> For the complete documentation index, see [llms.txt](https://magikdotfinance.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://magikdotfinance.gitbook.io/docs/main/how-is-apr-determined.md).

# How is APR determined?

TLDR APR is often a meme

Farming yields in the cauldron and on Magik Farm are determined by 3 key factors:

```
1). The current price of $MSHARE
2). The $MSHARE emissions allocations to the LP pool
3). The total amount of TVL in that LP
```

You can derive daily farm APR via the following equation:

(daily emissions x $MSHARE price)/TVL in the LP

Staked $MSHARE yields function on similar, but distinct premises:

```
1). The current price of $MAGIK
2). The current circulation of $MAGIK 
3). The % $MSHARE staked in the Dungeon
4). Protocol debt from issuing bonds
```

One of the reasons we advocate for using autocompounders is that they are often better tools for actually realizing your rewards. They take full advantage of $MSHARE price volatility and “lock in” those rewards via your LP.