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Impermanent Loss Calculator

Simulate Liquidity Provision Risks

Calculate potential impermanent loss (IL) for liquidity pools. Compare HODL vs LP returns with advanced modeling for fees and price changes.

Investment Details
Standard
Concentrated
Weighted
Price change: +100.00%
Impermanent Loss

-5.72%

$857.86 impermanentLoss.results.loss

LP Position Value

$14142.14

HODL Value

$15000.00

Difference

$-857.86
Fees & Net Result

Fees Earned (30 days)

+$246.58

Impermanent Loss

$-857.86
Net Profit/Loss
$-611.29
impermanentLoss.results.loss after 30 days

Break-even APR required

69.58% APR
IL exceeds fees
Impermanent Loss Curve
IL vs Price Change (50/50 (Uniswap V2))
Break-even Analysis
APR required to offset IL over time
AI Market Insights
BETA
Hedging Advisor

Suggested strategy to neutralize delta:

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Alert Level

Analysis...
Smart Yield Prediction

Static APR

30%

AI Predicted APR

%
% Confidence Score

What is Impermanent Loss (IL)?

Impermanent Loss (IL) is a temporary loss of funds occasionally experienced by liquidity providers on AMMs.

Understanding Impermanent Loss
Impermanent Loss happens when the price of your deposited tokens changes compared to when you deposited them. The greater the change, the bigger the loss. It is called 'impermanent' because if the price returns to the original value, the loss disappears. However, if you withdraw your funds while the price is different, the loss becomes permanent.
The IL Formula
For a standard 50/50 pool (like Uniswap V2), the formula is: IL = 2 * sqrt(P_ratio) / (1 + P_ratio) - 1. If the price of one asset doubles (2x), the IL is approximately -5.72% compared to holding.
Types of Impermanent Loss
1. **Standard IL (50/50)**: Common in Uniswap V2. Both assets have equal weight.<br/>2. **Concentrated Liquidity IL**: Seen in Uniswap V3. You set a price range. If price exits this range, IL can be 100% (your position converts entirely to the less valuable asset).<br/>3. **Stablecoin Pool IL**: Very low IL because stablecoins (USDC/USDT) usually hold their peg. If a peg breaks, IL can be massive.<br/>4. **Weighted Pools**: Asymmetric pools like Balancer (80/20). These suffer less IL than 50/50 pools because you hold more of the appreciating asset.
Important Clarification
IL is only realized when you withdraw. If you stay in the pool and trading fees earned (APY) are higher than your IL, you can still be profitable. This calculator helps you find that break-even point.

Frequently Asked Questions

Rarely. As long as stablecoins maintain their $1.00 peg, there is no price divergence and thus no IL. However, if a stablecoin de-pegs, significant IL occurs.

Yes. The goal of a Liquidity Provider is to earn enough in trading fees (and farming rewards) to cover the Impermanent Loss and generate a profit.

Stablecoin pools (USDC/USDT) and weighted pools with high correlation (e.g. wBTC/renBTC) have the lowest risk.

Concentrated liquidity (Uniswap V3) allows you to provide capital in a specific price range. It increases capital efficiency (higher fees) but also increases IL risk if prices move out of range.