Farming FAQ

Common questions about yield farming on HX Finance.

General Questions

What is the difference between LP fees and farming rewards?

• LP Fees: Earned from every swap in your pool (dynamic fees)
• Farming Rewards: Additional incentives on top of fees
• Both accumulate simultaneously when farming

Do I need to stake my LP position to earn fees?

No. LP positions earn trading fees automatically. Staking in farms adds extra rewards on top of base fees.

Can I farm with any liquidity position?

Each farm has specific requirements:

• Correct token pair
• Minimum liquidity amount
• Sometimes specific price ranges Check farm details before adding liquidity.

Are there lock-up periods?

No. Current farms have no lock-up periods. You can unstake and withdraw liquidity anytime.

Rewards & Returns

How are farming rewards calculated?

Your Share = Your Staked Liquidity / Total Staked Liquidity
Daily Rewards = Total Daily Rewards × Your Share × Multipliers

What affects my farming APR?

1. Pool TVL: Lower TVL = higher share of rewards
2. Price Range: Concentrated positions earn more
3. Multipliers: Points tier and pool multipliers
4. Token Prices: Reward token value changes

When are rewards distributed?

• Accumulate in real-time (every block)
• Visible in dashboard immediately
• Must claim manually to receive
• No automatic distribution

Can I see pending rewards before claiming?

Yes. The farming dashboard shows:

• Pending rewards in real-time
• Historical earnings
• Estimated daily/weekly rates
• Current APR

Technical Questions

What happens if my position goes out of range?

• Continue earning farming rewards
• Stop earning trading fees
• Consider rebalancing for optimal returns
• No penalty for being out of range

Can I stake multiple positions in one farm?

Yes. You can stake multiple LP NFTs in the same farm. Rewards are calculated based on total staked liquidity.

Do I pay fees on farming rewards?

• No protocol fees on rewards
• Standard network gas fees for claiming
• Consider batching claims to save gas

How do multipliers work?

Multipliers stack multiplicatively:

Base Rewards × Pool Multiplier × Tier Multiplier = Total
Example: 100 × 3x (pool) × 1.5x (tier) = 450 points

Strategy Questions

Should I farm stable or volatile pairs?

Stable Pairs:

• Lower impermanent loss
• Predictable returns
• Good for beginners

Volatile Pairs:

• Higher fees + rewards
• Higher risk
• Better for active managers

What's the best price range for farming?

Depends on strategy:

• Full range: Safe, lower returns
• ±20-30%: Balanced approach
• ±5-10%: High returns, needs monitoring
• Match to your management style

Should I compound farming rewards?

Compounding increases returns significantly:

• Claim rewards weekly/monthly
• Re-stake in same pool
• Exponential growth over time
• Consider gas costs

How often should I rebalance?

• Stable pairs: Monthly or less
• Volatile pairs: Weekly or when 50% out of range
• Active strategy: Daily monitoring
• Gas costs: Factor into frequency

Risk Questions

What are the main risks?

1. Impermanent Loss: Token price divergence
2. Out of Range: Missing fee income
3. Reward Token Price: Value fluctuations
4. Smart Contract: Technical risks

Can I lose my staked tokens?

Your LP tokens remain safe:

• Fully withdrawable anytime
• No admin control over funds
• Audited contracts
• Non-custodial system

What if farming program ends?

• Existing positions remain safe
• Can unstake anytime
• Still earn trading fees
• Move to new farms when available

How do I track performance?

Use available tools:

• Dashboard for real-time data
• Export transaction history
• Track IL with calculators
• Monitor total returns (fees + rewards)

Operational Questions

Gas costs for farming operations?

Typical gas costs:

• Add liquidity: ~$0.50-1.00
• Stake position: ~$0.20-0.40
• Claim rewards: ~$0.20-0.40
• Unstake: ~$0.20-0.40

Can I transfer staked positions?

No. You must:

1. Unstake position first
2. Transfer LP NFT
3. New owner can re-stake

Do rewards expire?

• Unclaimed rewards don't expire
• Accumulate until claimed
• Farm may end but rewards remain claimable

Mobile farming support?

Yes. Full functionality on mobile:

• Add/remove liquidity
• Stake/unstake positions
• Claim rewards
• Monitor performance

Getting Help

Where to get farming support?

• Discord #farming: Strategy discussions
• Docs: Detailed guides
• Calculator: Estimate returns
• Analytics: Historical data

Common issues and solutions?

"Transaction Failed"

• Increase slippage tolerance
• Check token approvals
• Verify sufficient gas

"Cannot Stake Position"

• Ensure correct pool
• Check minimum amounts
• Verify price range if required

"Rewards Not Showing"

• Refresh page
• Check if properly staked
• Verify farm is active

Best Practices Summary

1. Start Small: Test with smaller amounts first
2. Understand Risks: Read all documentation
3. Monitor Regularly: Check positions weekly
4. Take Profits: Claim rewards periodically
5. Stay Informed: Join community discussions
6. Track Everything: For taxes and optimization

Still have questions? Join our Discord (opens in a new tab) or read the full Farming Guide!