Impermanent Loss Calculator
Token A
Token B
Pool Settings
Holdings Comparison
Token Rebalancing
Initial Position:
Current Position:
What is Impermanent Loss?
Impermanent loss occurs when the price of your tokens in a liquidity pool changes compared to when you deposited them. The constant product formula (x * y = k) used by AMMs like Uniswap forces the pool to maintain a balance, which means your token quantities automatically rebalance as prices change.
When one token's price increases relative to the other, the pool automatically sells some of the appreciating token for the other token. This means you'll have less of the token that increased in value and more of the token that stayed the same or decreased in value.
The "impermanent" part of the name comes from the fact that these losses only become permanent when you withdraw your liquidity. If token prices return to their original ratio, the impermanent loss disappears.