LP Staking - How offered APY is determined?

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1. How these APYs are determined?
2. What makes the APY values go up or down?

I have read about that there are risks but it hasn't been explained properly. Section C of this article states:

The assets added by users could enjoy the handling fee income generated by the Binance Liquid Swap transactions. At the same time, the assets added by users could also enjoy the current interest of the token added (only applied when such token has the relevant current products). However, when the price of a certain currency fluctuates sharply in the market, the related shareholders may not be able to enjoy the same earnings. Therefore, the behavior of adding liquidity is not a risk-free operation with guaranteed earnings.

I would appreciate if someone could explain these things in short so a 5 year old can understand.

Thanks in advance.