# Farmers

Farmers are experienced DeFi users who fully understand how [AMMs](/introduction/concepts/automated-market-makers.md) work and are looking to optimize their portfolio's risk and return.

## How does it work?

Farmers can make use of the full range of features offered by Arcadia, such as:

* Selecting any AMM pool of any of the supported DEXs.
* Setting custom ranges for the liquidity positions.
* Setting automations for their positions, such as compounding or automatic rebalancing.
* Selecting various rebalance strategies.
* Using leverage to hedge IL risk, or the maximize yield. They can further choose which asset to borrow and how much leverage to take.
* Fine grained control to deposit, withdraw, borrow, repay... assets from their Account.

For a detailed guide how to farm, see [Here](/tutorials/farm.md).

## Where does the yield come from?

Depending on the type of Liquidity Positions that are used, there are two different possibilities:

#### Non-staked Liquidity Positions

All yield comes from trading fees that Traders pay when they swap through the underlying AMM pools.

#### Staked Liquidity Positions

Holders of staked positions, such as staked Aerodrome, receive token emissions.

Depending on the staking mechanism these emissions can be on top of the yield from trading fees. Or as is the case with Aerodrome, stakers choose to earn emissions instead of trading fees.

## What are the risks

All Strategists are exposed to the following risks:

* Smart contract risks
* Market risks
* Impermanent loss

And depending if they use leverage or not:

* Interest rate risk (interest rate can exceed yields)
* Liquidation risk


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