> For the complete documentation index, see [llms.txt](https://magmadefi.gitbook.io/magma-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://magmadefi.gitbook.io/magma-finance/features-1/auto-liquidity.md).

# Auto Liquidity

Similar to many successful yield farms such as PantherSwap, we will be implementing an 8% Auto Liquidity transfer tax. 

This means that for every transaction of MAGMA token, 8% of it will be converted to MAGMA-BNB LP token. This results in  higher liquidity that will reduce the price impact, allowing users to trade with a lower slippage tolerance.