# How APR is Сalculated

In TONCO’s concentrated liquidity model, each LP position has its own LP fee. The total APR combines the LP fee APR and farming boost (if farming is active).

## LP Fee APR

<figure><img src="https://2742307686-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fy8K8CxlddU5ghFM3MefK%2Fuploads%2Fgit-blob-9a2bc6c5861a4229512d41e9dcc93a3b60b5c2ed%2Fimage.png?alt=media" 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

{% hint style="info" %}
APR is calculated **every 2 minutes**
{% endhint %}

## Farming boost

Farming on TONCO acts as a boost to the current pool. If liquidity is out of the selected range and not used, no farming rewards are earned.

<figure><img src="https://2742307686-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fy8K8CxlddU5ghFM3MefK%2Fuploads%2Fgit-blob-c0348fc6749428f12c1ef9a31df92331c10b8ebd%2Fimage.png?alt=media" alt="" width="563"><figcaption></figcaption></figure>

<figure><img src="https://2742307686-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fy8K8CxlddU5ghFM3MefK%2Fuploads%2Fgit-blob-95ad4d5ee3551d2530994c1d729311e2424d8094%2Fimage.png?alt=media" alt="" width="286"><figcaption></figcaption></figure>

• **farming.rewardRate**: The amount of reward token distributed per unit time interval

• **INTERVAL**: The duration of the interval

• **rewardToken.derivedTON**: The value of one reward token in terms of TON token.

• **feeCollectedTotalTON**: The total fees collected in the pool during the interval (in TON token).

**Learn more about** [**Farming on TONCO**](https://docs.tonco.io/concentrated-liquidity/farming)