Impermanent Loss Calculator

This Impermanent Loss Calculator helps users calculate their potential impermanent losses, HODL value, LP position value, and total loss amount in a liquidity pool based on initial and final token prices, price change ratio, and pool share percentage.

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How to Use the Impermanent Loss Calculator

This guide will walk you through using the Impermanent Loss Calculator to assess potential losses or gains when providing liquidity to a token pool. Follow the steps below to get started.

Step 1: Initial Token Price Input

Begin by entering the Initial Token Price (USD) in the calculator’s first input field. This is the price of the token when you initially entered the liquidity pool. Make sure the value is a positive number, and it should be at least 0.00000001 USD.

Step 2: Final Token Price Input

Proceed to the next field and enter the Final Token Price (USD). This is the price of the token at the time you are calculating your potential loss or gain. The value must also be a positive number and have the same minimum limit as the initial price: 0.00000001 USD.

Step 3: Select the Price Change Ratio

Next, you will select the Price Change Ratio from a dropdown menu. This represents the percentage change in price between the initial and final token prices. Options available include:

  • 1% Price Change
  • 5% Price Change
  • 10% Price Change
  • 25% Price Change
  • 50% Price Change
  • 100% Price Change
  • 200% Price Change
  • 500% Price Change

Select the most accurate representation of the token’s price change during the period.

Step 4: Enter Your Pool Share

Lastly, indicate your Pool Share (%). This is the percentage of the total liquidity pool that your contribution represents. Enter a value between 0 and 100, which is the valid range for this input.

Step 5: Calculate the Results

After filling in all the inputs, the calculator will automatically compute and display the following results:

  • Impermanent Loss: This value indicates the percentage loss due to the price change relative to simply holding the tokens (HODLing). It’s calculated using the formula: (2 * sqrt(finalPrice/initialPrice)/(1 + finalPrice/initialPrice) – 1) * 100.
  • HODL Value: This represents the value of holding your tokens without providing liquidity. It’s calculated as your pool share percentage multiplied by the sum of the initial price and the multiplication of final price and price ratio.
  • LP Position Value: The potential value of your liquidity provider (LP) position, accounting for any impermanent loss.
  • Total Loss Amount: Shows the total amount lost (or gained) when providing liquidity, as opposed to holding the tokens.

Each result is displayed with appropriate formatting, such as percentage or currency, ensuring clarity of the output.