# 3. How is the profits generated from each farming pool?

**1)      Non-principal loss pool**

For unleveraged non-principal loss pools (all pools under the "non-principal loss farming" section do not support leverage), all APY is from farming revenue. 

**2)     Liquidity pool**

For leveraged liquidity pools (all pools under the "liquidity farming pool" section support up to 3 times leverage), APY comes from yield farming APY + transaction fee APY. Pilot will automatically repurchase the farmed tokens according to a certain percentage of PTD on a regular basis. In addition, as part of our liquidity farming, all leveraged positions exceeding 1 time will also make Pilot the highest position.