# Farms

Yield Farms allow users to earn UFX while supporting United Farmers X by staking LP Tokens.

Check out How to Use Farms guide to get started with farming.

{% hint style="warning" %}
Yield farming can give better rewards than Pools, but it comes with a risk of **Impermanent Loss**. It’s not as scary as it sounds, but it is worth learning about the concept before you get started.

Check out this great [article about Impermanent Loss ](https://academy.binance.com/en/articles/impermanent-loss-explained)from Binance Academy to learn more.
{% endhint %}

## Reward calculations

Yield Farm APR calculation includes both the rewards earned through providing liquidity and rewards earned staking LP Tokens in the Farm.

Previously, rewards earned by LP Token-holders generated from trading fees were not included in Farm APR calculations. APR calculations now include these rewards, and better reflect the expected APR for Farm pairs.

Below is a basic explanation of how APR is calculated.

![](https://lh4.googleusercontent.com/rJswz2qvCNTcODcClHxqlLpanSLsfbGtVw75MMPicBN1iKTKCuEYlPuoFAqskoy24DB9JBmATWb8dk3WmY1_BFDZoS94sWTBZhZrcnG711rC8ltDXPR3gdl8D50eWq_cfiBriKcl)

In the image above of the WBNB/BUSD pair, we see these values:

**Liquidity:** $387.42M\
**Volume 24H:** $96.97M\
**Volume 7D:** 709.73M

To calculate the APR, first we take the 24hour volume, $96,970,000, and calculate the fee-share of LP-holders, 0.17% \[**$96,970,000\*0.17/100 = $164,849]**.

Next, we estimate the yearly fees based on the 24h volume \[**$164,849\*365 = $60,169,885**].

Now we can calculate the fee APR with yearly fees divided by liquidity \[(**$60,169,885/$387,420,000)\*100 = 15.53%**]

With the fee APR, we can add the fee APR (15.53%) and the Farm staking APR (20.08%) to get the new total APR \[**15.53%+20.08% = 35.61%**].
