LP position value
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Impermanent Loss Calculator
DeFi liquidity-pool risk: Uniswap v2 50/50 constant-product pools and v3 concentrated-liquidity ranges. Compare your LP position against simply holding (HODL), and find the fee APR needed to break even.
⚠️ Not financial advice. DeFi carries smart-contract, oracle and volatility risks — estimates only.Calculator
Canonical check: +100% → −5.72% IL · +300% → −20% IL
Result
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HODL value
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Impermanent loss ($)
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Break-even fee APR
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Est. fees earned
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Net P&L (fees + IL)
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⚠️ Educational estimate, not financial advice. Fees are estimated on average position value; real fee income depends on volume, tier and time in range.
Impermanent loss at common price moves (v2)
| Price change | Ratio | Impermanent loss |
|---|
Losses are symmetric: a 50% drop hurts exactly as much as a 100% rise (−5.72%), because what matters is the ratio change, not the direction.
How the math works
v2 (Uniswap v2 whitepaper, constant product x·y=k). With price ratio p = P₁/P₀:
IL(p) = 2·√p / (1 + p) − 1
HODL value of a 50/50 deposit V₀: V₀·(p+1)/2 · LP value: HODL·(2√p/(1+p))
v3 (Uniswap v3 whitepaper, concentrated liquidity). Liquidity L is placed only inside [Pₐ, Pᵦ]. Deposit amounts at entry P₀:
x₀ = L·(1/√P₀ − 1/√Pᵦ) y₀ = L·(√P₀ − √Pₐ)
At exit price P₁ the position is re-valued (all token B if P₁ ≥ Pᵦ, all token A if P₁ ≤ Pₐ), and IL = Vpool/VHODL − 1 against the same initial tokens held. Narrower ranges amplify IL: a ±10% range at a 2× move loses ≈31.7% vs HODL, versus ≈5.7% for a full-range v2 position.
Break-even fee APR: fee $ needed = −IL$; APR = fee $ ÷ (average position value × years held).
Worked examples
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Frequently asked questions
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