> For the complete documentation index, see [llms.txt](https://virtus-finance.gitbook.io/welcome-to-virtus-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://virtus-finance.gitbook.io/welcome-to-virtus-finance/what-is-the-apy/how-is-the-apy-backed.md).

# How is the APY Backed?

APY backing description

VAP has integrated a solid VPF structure which takes advantage of the trading volume fees in order to back the staking rewards (rebase rewards).

In order to back the hefty APY of <mark style="color:green;">**410,347.53%**</mark>, Virtus follows the below approach:

**Scenario 1:**

When the daily VPF gains are greater than or equal to all the Holders Daily ROI, this means that the Swap Threshold can fill the plus-value generated from the Rebase Rewards.

**Scenario 2:**

If the daily VPF gains are lower than the Holders Daily ROI, a portion of the Virtus Treasury is added to fill the difference.