# Why Limitless

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As tokenization of assets becomes increasingly prevalent, the need emerges for a fully permissionless and incentive-compatible mechanism to swiftly establish new markets for leverage wherever and whenever there is demand.&#x20;

Limitless empowers anyone to create and participate in a new liquidity market, which unlocks experiences uniquely feasible on-chain, by offering a general leverage facility built on top of concentrated liquidity AMMs. Our innovative mechanism provides an elegant solution for the following three participant groups;

### [**Leverage Traders**](participants/leverage-traders)

Traders can margin long or short _**any**_ pair with _**no**_ forced price-based liquidations.&#x20;

Instead, even when their position is deeply underwater(at or below 'liquidation price'), they are merely required to pay [premiums](premium-model) to LPs to keep their position open.&#x20;

Traders will not only be able to access high leverage on-chain **for every** asset but will also **never** have to worry about forced liquidations again.&#x20;

Traders also can create leverage markets permissionlessly, allowing them to speculate on any pairs.&#x20;

### [**Liquidity Providers** ](participants/liquidity-providers)

Limitless offsets impermanent loss by boosting yields for Uniswap liquidity providers.&#x20;

Limitless offers an [LP product](participants/liquidity-providers/rehypothecation-of-liquidity) where Uniswap LPs can generate yield even when their liquidity position is out of range.

When the liquidity position is not utilized for trading, it is lent out to traders/borrowers. When the liquidity position is utilized for trading(in range), it will accrue trading fees. This allows Limitless LPs to earn higher yields through premium​s and trading fees.&#x20;

LPs also can create leverage markets permissionlessly, allowing them to earn yields on any tokens.&#x20;

{% hint style="info" %}
Limitless is the first **oracle-free** leverage trading protocol that enables **liquidation-free** leverage for **every** token.&#x20;

It is the **only place** where you can swap, margin trade, borrow against, and earn yield for **every** EVM-based chain's tokens.&#x20;
{% endhint %}

