Impermanent Loss
Runs offlineSee exactly what an LP position loses versus simply holding.
USD, split 50/50
the pool's trading fee yield, %
Impermanent lossprice ratio moved 1.5000×
-2.020%
If you had just held
$12,500.00
Value in the pool
$12,247.45
Shortfall before fees
-$252.55
At 12% fee APR, trading fees cover this shortfall in 63 days. Impermanent loss only becomes permanent when you withdraw.
About impermanent loss
Impermanent loss is the gap between holding two assets and pooling them: when their relative price moves, the pool rebalances you into more of the loser and less of the winner. The loss is a pure function of how far the ratio moved — a 2× divergence costs about 5.7%, a 4× divergence about 20% — and it only becomes permanent when you withdraw. What most calculators leave out is the other half of the trade, so this one also works out how many days of fee income at your pool's APR it takes to cover the shortfall.