Impermanent Loss Calculator
Calculate IL and ROI for liquidity pool positions
Input Parameters
What is Impermanent Loss?
Impermanent loss (IL) occurs when you provide liquidity to an automated market maker (AMM) and the price of your deposited assets changes compared to when you deposited them.
The bigger the price change, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than if you had just held the tokens.
However, impermanent loss can be offset by trading fees earned from the liquidity pool. This is why understanding both IL and fee revenue is crucial for liquidity providers.
Pro Tip: IL is called "impermanent" because it only becomes permanent when you withdraw your liquidity. If the price returns to the original ratio, the IL disappears.