Lipids are oily compounds found in food and the body that serve several important functions. They include fats, oils, waxes, steroids, and phospholipids. Fats and oils are composed of glycerol bonded to fatty acids. Fats are solid at room temperature while oils are liquid. Phospholipids are a major component of cell membranes and contain a phosphate group and two fatty acids. Steroids include cholesterol and various hormones. Lipids are essential for storing energy, insulating the body, and forming cell membranes.