# 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


---

# Agent Instructions: 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:

```
GET https://docs.mangrove.exchange/mgv-incentives/vault-lp-programs/example.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.