# Auto Compounding

Auto-Compounding automatically reinvests your earnings to increase your liquidity position. It is a way to automatically increase your position size on a certain LP position. Learn more in this blog post on [Mangata Auto-Compounding](https://mangata-finance.medium.com/auto-compounding-via-xcm-d6d8a43be363)**.**

{% hint style="warning" %}
To set up auto-compounding for your LP positions, you must already be providing liquidity on Mangata X. This can be done via the Mangata X trading app, following the [**Add & Remove Liquidity** ](/welcome/guides/liquidity-provision/add-and-remove-liquidity.md)guide. Liquidity can also be provided via Yield Bay's auto-compounding interface.
{% endhint %}

{% hint style="info" %}
Auto-compounding requires creating a proxy account that reserves 5000MGX from your balance. If you cancel auto-compounding, you can get your reserved tokens back by following 
{% endhint %}

{% hint style="danger" %}
Please note, your account should hold approximately 200 TUR to cover associated fees.
{% endhint %}

### Setting Up Auto Compounding

{% embed url="<https://youtu.be/zFoMWrzxGV4>" %}

### Step **1:**

Go to <https://mangata.yieldbay.io/> and connect your wallet. Find the LP pool you want to automate and click on **`Autocompound`**.

<figure><img src="/files/4OvgU5boanmkMXc1mniY" alt=""><figcaption></figcaption></figure>

### Step 2:

From the user interface, adjust your compounding settings. Select the duration, frequency, and percentage of rewards you would like to compound.

As of now, auto-compounding fees can only be paid using TUR. However, the ability to pay these fees with MGX will be introduced soon.

Once you've adjusted your settings, click **`confirm`.**

<figure><img src="/files/JTzM3luXsPv3u59yEgVI" alt=""><figcaption></figcaption></figure>

### Step 3:

**`Proceed`** with the transaction, then sign and submit from your wallet.

<figure><img src="/files/OSoUVQyw6jGatpAadhti" alt="" width="293"><figcaption></figcaption></figure>

## Stop Auto Compounding

### Step **1:**

Go to <https://mangata.yieldbay.io/> and connect your wallet. Find the LP pool you want to stop auto-compounding and click on **`Manage`.**

<figure><img src="/files/NhSFiCzRejEPxODfRIj0" alt=""><figcaption></figcaption></figure>

### Step 2:

Go to the bottom of the pop-up and click on **`Stop Autocompounding`**. A new screen will appear, asking if you are sure.

<div><figure><img src="/files/RTbZjuDXRuWMjaOBZAts" alt="" width="300"><figcaption></figcaption></figure> <figure><img src="/files/rR96KGD7x41FF1DvRZio" alt="" width="375"><figcaption></figcaption></figure></div>

### Step 3:

Sign the transaction from your wallet.

Make sure to retrieve your reserved assets by following [How to clear proxy reserve](/welcome/guides/technical-guides/how-to-clear-proxy-reserve.md) guide.

<figure><img src="/files/oQf1Y0WBf1Bl2X6ZutQH" alt="" width="299"><figcaption></figcaption></figure>


---

# 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://docs.mangata.finance/welcome/guides/liquidity-provision/auto-compounding.md?ask=<question>
```

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.