> 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/how-the-programs-work.md).

# How the Programs Work

### Program Structure

* Each vault has its own dedicated reward program
* Programs run for a fixed duration (typically one month)
* Rewards are distributed continuously based on users' LP token balances
* Each program has a predetermined budget (maximum rewards)
* Important: Program parameters (budget and duration) may be adjusted upward only

### Reward Distribution

* Rewards flow continuously to LP token holders
* The reward rate is specified per day
* Users earn rewards proportional to their share of the total LP tokens
* Early liquidity providers may benefit from a slight advantage as the share value typically grows over time

### Important Note for Early LPs

Early liquidity providers have a natural advantage in these programs. As more users join and the total value in the vault increases, the share value of LP tokens will gradually rise. This means:

* Early LPs will receive slightly higher rewards per dollar of liquidity
* The reward rate per dollar will naturally decrease as more liquidity joins
* This decrease is typically minimal and helps reward early supporters

### Reward Claims

Please note that rewards will be claimable once the MGV token becomes transferrable. Until then, rewards will continue to accumulate based on your LP positions.