The page is paginated on the fly, but it is the definition of what a page is. For reading epubs, a version of ADE is used. This defines a page as either 1000 or 1024 characters. So, exactly how much of a page is on each screen depends on the size of the font being used.
The page numbers at the bottom of the screen and the side are both generated by the software. The numbers on the side show the start of a page. The number on the bottom of the screen can be the same for more than one screen if the font size is large.
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