Impermanent loss calculator
Impermanent loss is the gap between holding two assets and pooling them. It is not a fee and nobody takes it from you — it is arithmetic, and it grows with divergence.
Where the number comes from
A 50/50 constant-product pool rebalances continuously, so the position tracks the geometric mean of the two price ratios, while holding tracks the arithmetic mean. The geometric mean is never larger. The gap between them is impermanent loss.
The consequences are fixed and worth memorising: a 2× move in one asset against a flat one costs about 5.7%; a 4× move costs about 20%; a 5× move costs about 25.5%. Those figures do not depend on which pool you use.
“Impermanent” is a misleading word
It is only impermanent if prices return to their starting ratio. If you withdraw while they have diverged, the loss is realised and permanent. The name describes the best case, not the expected one.
What decides whether it is worth it
Fees earned. The tool shows the fee income needed to break even against holding. If a pool cannot plausibly generate that, the position loses to doing nothing — which is a calculation worth doing before depositing rather than after.
