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

# Core Concepts

> Understand token creation, bonding curve trading, and graduation to liquid markets

## Token Creation

Anyone can create a token on JustPump with **zero upfront cost**. There's no need to provide liquidity or pay launch fees—your token starts trading immediately on a bonding curve.

### Supply Allocation

When you create a token, **100% of the total supply** goes into the liquidity pool and is available for trading through the bonding curve mechanism.

<Info>
  All tokens are held in the bonding curve smart contract initially. As the token graduates, liquidity is migrated to the permanent AMM pool with locked liquidity.
</Info>

### Immediate Trading

Once created, your token:

* Starts trading immediately on the bonding curve
* Has metadata stored via Solana token programs
* Is fully on-chain and transparent
* Requires no additional setup or configuration

***

## Bonding Curve Trading

Tokens trade on a **linear bonding curve** during the initial phase. This provides fair and predictable price discovery.

### How Bonding Curves Work

The bonding curve uses a simple mathematical formula:

* **Every buy** increases the price based on how many tokens have been sold
* **Every sell** decreases the price proportionally
* Price is **deterministic** and **transparent**—no hidden mechanics
* All trades execute **instantly** and **on-chain**

<Accordion title="Technical Details: Linear Pricing Formula">
  The price at any point is calculated as:

  ```
  Price = base_price + (slope × tokens_sold)
  ```

  For buying `t` tokens, the cost includes the area under the curve, accounting for the increasing price as more tokens are sold.
</Accordion>

### Anti-Rug Protection

JustPump includes built-in protection against rug pulls and market manipulation.

<Warning>
  **10% Maximum Sell Limit**: You can only sell up to 10% of the circulating supply in a single transaction. This prevents large holders from dumping and crashing the price instantly.
</Warning>

This mechanism gives the community time to detect and respond to suspicious activity. Large holders must split sells across multiple transactions, making their actions visible.

***

## Graduation Process

When a token reaches certain conditions, it **graduates** from the bonding curve to a permanent liquidity pool on JustSwap.

### Graduation Threshold

<Info>
  A token graduates when **85 SOL** in collected quotes is reached through bonding curve trading.
</Info>

### What Happens During Graduation

<Steps>
  <Step title="Status Update">
    The token status changes from `OnCurve` to `ReadyToMigrate`, indicating graduation is imminent.
  </Step>

  <Step title="Liquidity Transfer">
    The smart contract automatically transfers the remaining liquidity to create the permanent AMM pool:

    * Remaining token supply to the AMM base vault
    * **85 SOL** collected from bonding curve trades to the AMM quote vault
  </Step>

  <Step title="Pool Creation">
    A canonical liquidity pool is created on JustSwap using a Cross-Program Invocation (CPI). Only the launchpad program can create these canonical pools.
  </Step>

  <Step title="LP Token Minting">
    Liquidity provider (LP) tokens are minted and locked permanently to the pool PDA (Program Derived Address). These cannot be withdrawn—ensuring permanent liquidity.
  </Step>

  <Step title="Mint Authority Revocation">
    The mint authority for the token is revoked, fixing the supply forever. No new tokens can be created.
  </Step>

  <Step title="Trading Begins">
    The token is now available for trading on JustSwap with the constant product AMM formula (x × y = k). All future trades happen on the AMM, not the bonding curve.
  </Step>
</Steps>

### After Graduation

Once graduated:

* Token has **permanent locked liquidity** (cannot be removed)
* Supply is **fixed** (no more minting possible)
* Trades execute on **JustSwap AMM** with market-driven pricing
* Fees are typically **lower** than bonding curve fees
* Token is eligible for **external integrations** and listing on other platforms

<Tip>
  Graduation represents a major milestone for a token—it transitions from a speculative launch phase to a more mature, liquid trading environment with permanent guarantees.
</Tip>

***

## Summary

<CardGroup cols={3}>
  <Card title="Launch" icon="rocket">
    Create tokens instantly with zero cost. 100% of supply goes into the liquidity pool for immediate trading.
  </Card>

  <Card title="Trade" icon="chart-line">
    Fair bonding curve pricing with 10% anti-rug protection. All trades on-chain and transparent.
  </Card>

  <Card title="Graduate" icon="graduation-cap">
    At 85 SOL, token migrates to permanent liquidity pool with fixed supply and locked liquidity.
  </Card>
</CardGroup>