# Reward Calculation Mechanism

Your daily rewards are calculated based on your share of the staking pool for that day using the following formula:

<mark style="color:red;">**User Daily Rewards**</mark> = (Total Daily Rewards) × (User Shares / Total Shares of That Day)

## Key Characteristics:

#### ⏳ Early Participation Advantage

Stake early while the pool is smaller to earn a larger portion of the daily rewards.

#### 📉 Declining APR Over Time

As more users join and the staking duration shortens, the Annual Percentage Rate (APR) naturally decreases.

#### 🎯 Incentivized Participation

To earn maximum rewards, users are encouraged to stake early and stake more.


---

# 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.magicsquare.io/magic-staking/magic-farms/reward-calculation-mechanism.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.
