# Private/Public Liquidity

RadixPlanet DEX allows the creator of the pool to decide whether or to allow anybody to add liquidity to the pool he creates, or to be able to authorize only specific people who can participate in liquidity providing

Both approaches have pros and cons, below we summarize the benifits of each approach and potentially help you out in deciding which approach to follow when you create your liquidity pool

## Public Liquidity Pools

A public liquidity pool allows anyone to add liquidity, withdraw their earnings (if the pool has this rule), and earn liquidity mining rewards

Public pools are created with predefined set of tokens that can never be changed after creation and a set of fee rules that are also fixed and can never be changed after creation

Users usually choose to add liquidity to public pools because of the transperancy and guarantees they get because their are confident that the pool rules will never change and it will remain as-is as when they have provided the liquidity for

When a public liquidity pool is created, the following happens:

* A liquidity provider badge is created and returned to the pool creator representing his added liquidity and is used to uniquely identify his liquidity possition to withdraw earnings in the future

## Private Liquidiy Pools

Private liquidity pools - when created - they are created the same way the public pools are created with one small change, to flag them as private within the creation transaction, This makes the following changes when creating the pool:

* A liquidity provider badge is created and returned to the pool creator representing his added liquidity and is used to uniquely identify his liquidity possition to withdraw earnings in the future
* A pool member badge is created and returned to the pool creator representing he is a participating member in the pool
* A pool manager badge is created and returned to the pool creator, this badge allows its holder to all kinds of available modifications after the pool's creation like:
  * Adding a new token to liquidity
  * Removing an existing token from liquidity
  * Adding new fee rules
  * Removing rules from existing fee rules
  * Creating new member badges, allowing new members to participate in liquidity providing
  * Earn management fees from trades happening on the pool



