> For the complete documentation index, see [llms.txt](https://docs.pearl.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pearl.exchange/caviar/fees-and-formulas.md).

# 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%`

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