> For the complete documentation index, see [llms.txt](https://docs.mangrove.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mangrove.exchange/mgv-incentives/vault-lp-programs/example.md).

# Example

### Reward Calculation Example

Let's walk through a hypothetical example to illustrate how the rewards mechanism works:

### Scenario

* A user deposits the equivalent of $1,000 into the USDC-USDT vault
* They maintain this position for 10 days
* The reward rate is 0.01 MGV per dollar per day

### Rewards Calculation

1. Daily MGV rewards = $1,000 × 0.01 MGV/$ = 10 MGV per day
2. Total MGV rewards for 10 days = 10 MGV × 10 days = 100 MGV

### Hypothetical Value Example

***IMPORTANT DISCLAIMER: The following calculations use a hypothetical token value for illustration purposes only. This is NOT the actual or projected value of the MGV token. Users should not rely on these figures for investment decisions.***

To help understand the magnitude of rewards, let's use a purely hypothetical example value:

* Assuming a hypothetical FDV (Fully Diluted Valuation) of $100,000,000:
  * With total supply of 1B MGV, each MGV would be valued at $0.10
  * 100 MGV earned would be equivalent to $10 in rewards value for 10 days
  * This would represent an annualized rate of approximately 36.5% APR on the $1,000 principal

### Important Notes

* The actual value of MGV tokens has not been determined
* The example above uses arbitrary values for illustration only
* Actual returns will depend on:
  * The future market value of MGV tokens once transferrable
  * Changes in total liquidity in the pool
  * Duration of liquidity provision
  * Potential adjustments to reward rates
  * Market conditions and other factors