# 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. --- # 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/how-the-programs-work.md?ask= ``` 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.