> For the complete documentation index, see [llms.txt](https://docs.hyperion.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hyperion.xyz/guides/apr-calculation-for-liquidity-pools-and-positions.md). # 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: