Lobster Cave is situated northeast of Liuqiu. Its nearby coral reef coast has plenty of small platforms with potholes and ditches formed by being eroded by the sea. The potholes are formed by being eroded by the sea. They are round and the bottoms are flat as a result of dissolution and sedimentation.

The potholes here are unusual as they contain small stones which rub the inner part of the holes. The ditch is formed as the waves continuously wear the weak part of the coast.