What impermanent loss results when one asset changes price in a 50/50 pool?
Impermanent loss compares the value of a 50/50 constant-product liquidity position with simply holding the same starting assets. It isolates the rebalancing effect caused by a relative price change.
Comparing pooled assets with simply holding
This calculator assumes a 50/50 liquidity pool containing one changing token and one stable-priced token. It compares the pool's value after a price change with the value of simply holding the original two-token position.
The price ratio comes from final price divided by initial price. Impermanent loss is the percentage difference between the modelled pool value and hold value; swap fees, incentives, range liquidity and pool-weight variations are excluded.
One relative price change inside a pool
The default case treats one asset as changing relative to a stable counterpart. It calculates the pool-versus-hold difference from the price ratio rather than predicting either asset’s future price.
A shortfall versus hold, not always a cash loss
The displayed percentage is a relative shortfall against holding, not necessarily a negative currency return. Fee income can offset it, but fees are not included in this formula.
The 50/50 constant-product relationship
r = Price now ÷ Price at depositHold value = Deposit × (1 + r) ÷ 2Pool value = Deposit × √rImpermanent loss = (Pool value ÷ Hold value − 1) × 100Assumes a 50/50 pool and one token priced against a stable one.Pool designs this formula cannot model
This formula does not apply unchanged to concentrated liquidity or pools with weights other than 50/50.
- The pool uses a 50/50 constant-product weighting.
- One asset is measured against a stable comparison asset.
- Trading fees, incentives, slippage and concentrated ranges are excluded.
Calculations related to impermanent loss
The following tools examine neighbouring parts of the same calculation without changing the inputs or assumptions used above.
Quick answers
Frequently asked questions
What pool type does this impermanent loss calculator assume?
It assumes a constant-product 50/50 pool with one token priced against a stable token.
Are liquidity-provider fees included?
No. The result isolates impermanent loss and does not add trading fees, rewards or incentives.
Can it calculate impermanent loss for an 80/20 pool?
No. The formula is specifically for the stated 50/50 pool assumption.
Why is it called impermanent loss?
The loss is called impermanent because it exists only while the price ratio differs from the point of deposit — if the price returns to that ratio, the loss disappears. It only becomes permanent (realized) once liquidity is withdrawn and the tokens are sold at the shifted ratio.
Educational content only. This guide is not financial advice.