After a position NFT is transferred, the party that can withdraw the principal is the wallet address currently holding this NFT, not the person who originally created the position. Uniswap's official explanation is straightforward: the wallet address holding the NFT owns that liquidity and can remove liquidity, claim fees, or add liquidity to the position; transferring the NFT to another address means handing over ownership of the liquidity to the recipient.
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Why "whoever holds the NFT can withdraw"
Uniswap V3 uses an NFT to represent each liquidity position. This NFT stores all the position's data: the trading pair address, fee tier, upper and lower price range limits, liquidity amount, fee growth records, and more. At the contract level, the NonfungiblePositionManager contract's decreaseLiquidity and collect functions both take tokenId as a parameter, and the permission check is based on whether the caller is the owner of that NFT or an authorized operator.
This means that once you transfer the NFT to someone else, the on-chain contract only recognizes the new holder. Even if the original creator remembers how many tokens they deposited and in what price range, they have no contract-level permission to touch the funds in that position. Third-party tool descriptions also confirm this: only the wallet holding the NFT can withdraw liquidity, and the funds go directly back to that wallet. There is no way to withdraw someone else's liquidity or redirect the result to another address.
Things to think about before transferring
If you are the one transferring the NFT out, the transfer is irreversible. Once the NFT reaches the other party's wallet, that party has full control over the position: they can remove all liquidity to take the principal and fees, or transfer the NFT to anyone else. You cannot "undo" this transfer afterward through the Uniswap interface or the contract.
If you are the one receiving the NFT, the withdrawal process itself is not complicated: connect the wallet holding the NFT in Uniswap or a supported tool, find the position, choose to reduce liquidity (partially or fully), and after confirmation the principal and accumulated fees will be sent to that wallet. The Uniswap interface usually does not burn the NFT after removing liquidity (unless it is a V3 to V4 migration). The NFT will remain in the wallet, but the position's liquidity becomes zero, leaving only an empty shell.
A common misunderstanding
Some people think that "after transferring the NFT to an exchange or custodial wallet, they can still operate it with the original address later." This understanding is wrong. Transferring an NFT is different from transferring ERC-20 tokens. When ERC-20 tokens arrive at an exchange address, you can at least claim your rights through the exchange's deposit records; but when a V3 position NFT arrives at a certain address, only that address can trigger on-chain operations. If you transfer it to an exchange's deposit address, you usually cannot ask the exchange to "withdraw Uniswap liquidity" for you, because the exchange will not operate an NFT position it does not understand. Transferring the NFT to a shared wallet or an address whose private key you do not control is equivalent to placing that liquidity in a state where you cannot directly operate it.
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