> For the complete documentation index, see [llms.txt](https://docs.xei.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xei.finance/product-guides/faq/what-factors-affect-lp-apr.md). # What factors affect LP APR? The LP fee reward APR of different liquidity positions may vary. It is based on the following influencing factors: ### Trading volume More trading volume generates more fee rewards. ### Fee tier of the liquidity token pair Higher fee tiers result in higher fee rewards from a single transaction. ### Amount of tokens added to the liquidity position The larger the amount of tokens added, the greater the relative share in the total effective liquidity, which will result in more fee rewards from transactions. ### Set price range When setting a smaller price range, the liquidity concentration is higher for the same amount of tokens added, meaning that this liquidity accounts for a larger share relative to the total effective liquidity and can obtain more fee rewards from transactions. ### Amount of currently effective liquidity If more users deposit and concentrate their liquidity in the same range as you, you will receive fewer fee rewards because your relative share of the total is smaller. ### Whether the liquidity position is in an active state Only liquidity positions in an active state can earn trading fee rewards. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.xei.finance/product-guides/faq/what-factors-affect-lp-apr.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.