> For the complete documentation index, see [llms.txt](https://docs.mangata.finance/welcome/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mangata.finance/welcome/guides/liquidity-provision/auto-compounding.md).

# 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>