AI Trading CampAI Trading Camp

Impermanent Loss Calculator

Calculate the impermanent loss for liquidity pool providers. Compare LP returns versus simply holding the tokens.

$
$
Impermanent Loss
Price Change100.00%
Impermanent Loss-5.7191%
Value if Holding ($1,000 start)$1500.00
Value in LP ($1,000 start)$1414.21
Loss vs Holding$-85.79
FAQ
What causes impermanent loss?
Impermanent loss occurs when the price ratio of tokens in a liquidity pool changes after you deposit them. The AMM rebalances your position, leaving you with fewer of the appreciating token and more of the depreciating one compared to simply holding both tokens outside the pool.
Is impermanent loss always permanent?
No. The loss is called 'impermanent' because it can reverse if token prices return to their original ratio. However, if you withdraw while the ratio has shifted, the loss is realized. Trading fees earned from the pool can also offset the loss over time.