# Fees and Formulas

### Dynamic Conversion Fee

When converting vePEARL to CAVIAR, a dynamic conversion fee is applied. The fee is influenced by the balance of the stable LP on Pearl and ranges from a minimum of 12.5% to a maximum of 70%. The dynamic conversion fee formula is:
`Dynamic fee = (\$CVR_balance / \$PEARL_balance) * min_conversion_fee`
Example:
If the balance in the CAVIAR/PEARL LP is 1000 \$PEARL and 2000 \$CVR, the conversion fee would be:
`Conversion fee = (2000 / 1000) * 12.5% = 2 * 12.5% = 25%`

### Distribution Formulas

To understand the CAVIAR advantage, let's break down the distribution formulas for the LPs and staking pool.
1. 1.
Calculate CVR_total: `CVR_total = CVR_Balance + CVR_staked`
2. 2.
Calculate LPs Distribution: `LPs Distribution = (CVR_LP_balance / CVR_total) * (Rebase/2)`
3. 3.
Calculate Staking Distribution:`Staking Distribution = (Rebase/2) - LPs Distribution`
Example:
Assuming `CVR_LP_balance` is 1000, `CVR_staked` is 800, and `Rebase `is 200:
`CVR_total = 1000 + 800 = 1800 `
`LPs Distribution = (1000 / 1800) * (100/2) = 27.78`
`Staking Distribution = (100/2) - 27.78 = 22.22`