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Last reviewed: 2025-12-30

Quick take

  • Impermanent loss (IL) is the gap between holding tokens and providing liquidity after a relative price move.
  • Fees can offset IL, but fees are variable and never guaranteed.
  • This calculator includes v2 (50/50), weighted pools, and a simplified v3-style range model.
  • Use break-even APR as a sanity check, not as a promise of outcome.

How to use this calculator

  • Set token labels so you remember what you’re modeling.
  • Pick the pool type (v2 / weighted / v3 range) and enter weights or a range if needed.
  • Stress-test a relative price move (up and down) with the slider.
  • Add your best-guess fee APR and reward APR, plus any one-time costs (gas/management).
  • Use “Net vs hold” + “Break-even total APR” to sanity-check whether incentives plausibly offset IL.

Assumptions and limits

  • Models constant-product (v2) and constant-mean (weighted) pool math, plus a simplified v3-style range position.
  • One-time costs are optional; slippage and rebalance execution costs are not modeled.
  • APR inputs are approximations; real fee/incentive rates vary with volume, TVL, and time in-range.
  • Token symbols are labels; the calculator does not fetch prices or token metadata.
  • Does not model stableswap curves, dynamic fees, or protocol-specific mechanics.

FAQ

Does this apply to Uniswap v3-style concentrated liquidity?

Partially. This tool includes a simplified v3-style range model that captures in-range vs out-of-range behavior. Protocol specifics (rebalances, real fee rates, and how long you stay in-range) still matter.

Is IL symmetric?

For a v2 50/50 pool, yes. For weighted pools and v3 ranges, outcomes can be asymmetric depending on weights and range.

Can fees fully offset IL?

Sometimes. It depends on volume, volatility, and how long you stay in the position. Treat fee assumptions as uncertain.

Is this financial advice?

No. This is a risk math sanity check. You are responsible for verifying protocol specifics and deciding position size.

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