Impermanent Loss Calculator

Input your liquidity pool parameters to see potential losses and fee earnings

⚠️ Impermanent loss can exceed 50% in highly volatile pairs. Always calculate before providing liquidity.

Understanding Automated Market Makers

⚠️ Key Risk Factors

  • Price divergence between paired assets
  • Low trading volume = fewer fees
  • Smart contract vulnerabilities
  • Rug pulls or protocol failures

Pool Risk Levels

High Risk

Two volatile assets (ETH/BTC, UNI/LINK)

Medium Risk

Stable + volatile (USDC/ETH, DAI/BTC)

Low Risk

Stablecoin pairs (USDC/USDT, DAI/USDC)

Mitigation Strategies

  • Start with stablecoin pairs
  • Choose high-volume established pools
  • Use impermanent loss protection platforms
  • Regularly monitor and rebalance

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Absolutely! This impermanent loss calculator works for any decentralized finance (DeFi) protocol: Uniswap, Curve, PancakeSwap, SushiSwap, and more.
It's the potential loss liquidity providers face when the price ratio of their deposited assets changes compared to simply holding them. It's 'impermanent' because losses can reverse if prices return to their original ratio.
When one token in your liquidity pair outperforms the other. The greater the price divergence, the higher the potential loss. Stablecoin pairs have minimal impermanent loss.
Yes, high trading volume pools generate substantial fees that can offset or exceed impermanent loss. This calculator helps you evaluate if fees can cover potential losses.
Volatile/volatile pairs (like ETH/BTC) have the highest risk. Stable/volatile pairs have moderate risk. Stable/stable pairs have negligible impermanent loss but typically lower fees.
Not necessarily. If fees earned exceed impermanent loss, you can still profit. Many successful LPs focus on high-volume pools or stablecoin pairs to manage risk.
Choose stablecoin pairs, provide liquidity in pools with high trading volume, use protocols with impermanent loss protection, and regularly monitor your positions to withdraw if divergence becomes too large.

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