This calculator uses Exon's constant product formula to determine impermanent loss.
When you supply liquidity to a liquidity pool and the value of your acquired assets changes—becomes less than what you first invested in, you suffer an impermanent loss. The greater the change, the more vulnerable you are to temporary loss.
To put it simply, impermanent loss is the opportunity cost of what you lose when you provide liquidity for traders to use your coins or tokens to trade. If you invest, you will earn the fees, but may lose out on potential profits from coins appreciating in value. If you HODL, you get complete exposure to the coins increasing in value, but you do not earn any extra incentives.
Fees are not included within results
Fees are not included within results
If $500 of Token A and $500 of Token B were provided as liquidity
If $500 of Token A and $500 of Token B were held