Liquid paper is not what it sounds like in a literal sense. A large part of the chemical composition of paper includes lignin, a chief component of wood. Liquid paper contains mostly titanium dioxide and naptha along with some additional resins.
I believe liquid paper correction fluid contains ammonia and water. It might have a small amount of some type of soap that helps with the cleaning process. It mainly consists of ammonia because you can smell that strongly and probably has some alcohol in the combination of ingredients to make the smell that it has.