# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://magmadefi.gitbook.io/magma-finance/features-1/auto-liquidity.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.