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He needs DP to be liver

A works in coop with extension (E) to make bay. It restricts the black pigment to the points (legs, mane, tail). On a red horse there is no black pigment to restrict, and therefore it has no effect.

To make a liver chestnut you have to have at least 3 darkening genes. The darkening genes are Sooty (or Sooty+) and Dense Pheomelanin (DP). A horse can only have 1 or 2 of each gene, so to make a liver chestnut, it has to have either 2 Sooty + 1 DP, 1 Sooty + 2 DP or 2 Sooty + 2 DP (the last one making what we refer to as a "black chestnut".