> For the complete documentation index, see [llms.txt](https://docs.arcadia.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.arcadia.finance/users/protocols.md).

# Protocols

Protocols use [Arcadia Foundry](/foundry-intro.md) to manage onchain liquidity. Foundry serves two use cases:

* [**Protocol Owned Liquidity**](/foundry-intro/foundry-pol.md)**:** Manage liquidity for your native token — rebalancing, bootstrapping, buybacks, and custom distribution strategies.
* [**Treasury Liquidity Management**](/foundry-intro/foundry-treasury.md)**:** Deploy treasury assets (USDC, WETH, wstETH, etc.) as liquidity in established pairs for yield.

Both are non-custodial, DAO/multi-sig compatible, and fully automated. See [Foundry Benefits](/foundry-intro/foundry-benefits.md) for details.

## What are the risks

Protocol liquidity positions are exposed to:

* Smart contract risks
* Market risks
* Impermanent loss

And depending if they use margin or not:

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


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