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Impermanent Loss Calculator
Calculate potential loss when providing liquidity to AMM pools
Pool Parameters
What is Impermanent Loss?
Impermanent Loss (IL) occurs when you provide liquidity to an AMM pool and the price ratio of your deposited tokens changes compared to when you deposited them. The loss is "impermanent" because it only becomes permanent when you withdraw your liquidity. Trading fees earned may offset the IL.
Formula: IL = 2 × √(price_ratio) / (1 + price_ratio) - 1
About Impermanent Loss Calculator
What is Impermanent Loss Calculator?
Calculate potential impermanent loss when providing liquidity to AMM pools. Enter price changes to see how much value you'd lose compared to simply holding the tokens.
Features & Benefits
- Impermanent loss calculation
- Price change simulator
- Pool value comparison
- Break-even fee estimation
- Visual loss chart
- Multi-scenario analysis
Frequently Asked Questions
- What is impermanent loss?
- The difference between holding tokens vs providing liquidity. When prices change, LPs get less value than hodlers due to AMM rebalancing.
- When does impermanent loss become permanent?
- When you withdraw liquidity while prices differ from deposit time. If prices return to original, the loss disappears.
- How do I offset impermanent loss?
- Trading fees and liquidity mining rewards can offset IL. Stable pairs have lower IL. Concentrated liquidity increases both IL and fees.
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