> ## Documentation Index
> Fetch the complete documentation index at: https://docs.zonk.fun/llms.txt
> Use this file to discover all available pages before exploring further.

# Liquidity custody

> Why graduated LP principal is permanently bound.

Each graduated token receives a dedicated `PermanentLPCustodianV3`. The Uniswap V3 position NFT is minted directly to this ownerless, non-upgradeable contract.

The custodian deliberately has no method to:

* decrease liquidity;
* transfer or approve the LP NFT;
* rescue principal;
* delegate calls;
* receive arbitrary NFTs.

It exposes only irreversible position binding and permissionless fee collection. Binding validates the token/WETH pair, canonical factory, 1% fee tier, full-range ticks, and NFT ownership.

`collectFees()` calls the NonfungiblePositionManager's fee collection function and sends proceeds to `PermanentLPFeeVaultV3`. Collecting fees does not decrease liquidity. The vault then accounts separately for protocol, creator, community, and trader-reward shares.

<Warning>
  “Permanent” is a contract architecture property, not a claim that the pool will always have useful market depth or that either asset will retain value.
</Warning>