# How APR is Calculated

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**Note for DEX Teams:**

Here you can explain how your platform calculates the APR shown to liquidity providers.

**Tailor the section to reflect your specific UI and reward mechanics. Ensure that any APR displayed on your frontend is clearly broken down and matches this explanation.**
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In an Algebra-powered DEX with concentrated liquidity, each liquidity provider position earns its own fee share based on its specific price range. The displayed APR reflects a combination of earned swap fees and any additional rewards from active farming campaigns.

### LP Fee APR <a href="#lp-fee-apr" id="lp-fee-apr"></a>

<figure><img src="https://651545192-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQ0xXWotbDRlc7WzSWZQV%2Fuploads%2FBN3QuXXKyz5NiR2b8DR9%2Fimage.png?alt=media&#x26;token=f5611361-d14c-4f3f-be3d-60d90cd88cb3" alt="" width="331"><figcaption></figcaption></figure>

• **dayFees**: daily fees in the pool (USD)

• **liquidity**: total liquidity in the pool

• **positionLiquidity**: liquidity provided by the position (in range)

• **amount0USD**: value of token 0 in USD

• **amount1USD**: value of token 1 in USD

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APR is calculated **every 2 minutes**
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