Impermanent Loss Calculator

Impermanent loss is the difference between the value of tokens deposited in an AMM liquidity pool and the value those same tokens would have if you simply held them. It appears whenever the two pool assets change price relative to each other, and becomes permanent only when you withdraw.

It models a 50/50 constant product pool (Uniswap v2 style). LP value equals deposit × √(ra·rb) and hold value equals deposit × (ra+rb)/2, where ra and rb are the price ratios of the two tokens. Trading fees are not included.

No. Relative to holding, a constant product LP position is always worth the same or less when prices diverge. Fee income is what can make providing liquidity profitable overall.