Previous studies have shown that liposomal model membranes, prepared with fractions obtained from sheep erythrocytes, release trapped glucose in the presence of rabbit antisheep erythrocyteserum and unheated guinea pig serum. The present experiments demonstrate that: (1) these liposomes can bind (neutralize) antibodies in the antiserum, which are responsible for sheep erythrocyte hemolysis, but only when the appropriate antigen has been incorporated into the liposomal structure, and (2) liposomes, which contain antigen, are able to fix guinea pig complement but only in the presence of antiserum. These observations further support the feasibility of using liposomes as an artificial membrane system for studying certain aspects of complement mechanism. © 1969, American Chemical Society. All rights reserved.