Impermanent Loss Calculator
Calculate potential impermanent loss for your liquidity positions. Understand your risks before providing liquidity to AMM pools.
CONCENTRATED LIQUIDITY IMPERMANENT LOSS CALCULATOR (STABLE/UNSTABLE PAIR)
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IMPERMANENT LOSS CALCULATIONS
Calculator based on Uniswap V3 concentrated liquidity impermanent loss formulas.
Formula: (X + (L/√Pb))(Y + L√Pa) = L²
Impermanent Loss vs Price
This chart shows how impermanent loss varies with price changes in a concentrated liquidity position. The highlighted area represents your price range, where your liquidity is active.
Position Value vs Price
This chart compares your position value to a simple HODL strategy across different price points. The highlighted area shows your active price range.
Fee APR vs Price Range
This chart illustrates the relationship between range width, estimated APR, and risk. Narrower ranges typically offer higher APR but with increased risk of the price moving out of range.
Understanding Impermanent Loss
Impermanent Loss (IL) occurs when the price ratio of tokens in a liquidity pool changes compared to their prices when you deposited them. This calculator helps you:
- Estimate potential IL based on price changes
- Compare IL against earned trading fees
- Make informed decisions about liquidity provision
- Understand the risks involved in AMM pools
Concentrated Liquidity Explained
Concentrated liquidity, introduced by Uniswap V3, allows liquidity providers to focus their capital within specific price ranges, potentially increasing capital efficiency but also introducing new considerations for impermanent loss:
- When prices stay within your specified range, you earn more fees with less capital
- If prices move outside your range, your position becomes 100% composed of a single asset
- Narrower ranges can lead to higher returns but increase the risk of the price moving out of range
- The impermanent loss calculation is more complex than in traditional AMMs