# APR Calculation for Liquidity Pools and Positions ### Formula Pool APR = (Fees+Rewards) / Active Pool Value Your Position APR = (Fees+Rewards) \* (Your Active Position LP Units / Active Pool LP Units) / Your Position Value ### Example Consider a pool with three liquidity providers where the current price is in bin P. * A deposits $1000 entirely within the active price bin P and receives 1000 active LP units. * B deposits $1000, spreading it evenly across 100 bins, receiving only 9 active LP units. * C deposits $1000, but none of the funds falls into bin P, so this position is inactive and receives 0 active LP units. * The pool generated $100 in fees within bin P. **APR Calculation:** * Pool APR = $100/$2000 = 5% * A's Position APR = $100\* (1000 /1009) / $1000 = 9.91% * B's Position APR = $100\* (9 /1009) / $1000 = 0.089% * C's Position APR = $100\* (0 /1009) / $1000 = 0% Understand the APR Calculation from a real-world example: --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.hyperion.xyz/guides/apr-calculation-for-liquidity-pools-and-positions.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.