Impermanent Loss Calculator
Estimate the value difference between holding Bitcoin and USDC versus providing them as concentrated liquidity.
What is Impermanent Loss?
Impermanent loss happens when the price ratio of the two assets in a liquidity pool changes from the time you deposited. The pool rebalances your holdings automatically, which can result in a lower total value than simply holding the assets in a wallet. This calculator shows the estimated impact for a BTC/USDC position.
Position Setup
Ratios are calculated from the Uniswap v3 equations using the selected range and the asset price at deposit time.
Estimated Results
Hold Value
$10,000.00
Pool Value
$10,000.00
Impermanent Loss
$0.00
IL Percentage
0.00%
Formula: IL = Pool Value − Hold Value. The LP value exactly matches the hold value.
Price range indicator
Position at future price ($60,000.00)
Price is inside the range — the position holds both assets.
- BTC held
- 0.07664370 BTC
- Stablecoin held
- $5,401.38
- Position P&L
- $0.00 (0.00%)
LP composition
Live split of the position at the selected future price.
Deposit & entry composition
- You deposited
- 0.07664370 BTC + $5,401.38
- Rebalance swap
- None
- LP BTC at entry
- 0.07664370 BTC
- LP stablecoin at entry
- $5,401.38
Amounts follow the Uniswap v3 liquidity equations exactly. Trading fees and slippage are not modeled.
Hold strategy comparison
Holding your original 0.07664370 BTC of BTC plus $5,401.38 in stablecoins, matching the Uniswap v3 deposit ratio.
- Current hold value
- $10,000.00
- Current LP value
- $10,000.00
- Dollar difference
- $0.00
- Percentage difference
- 0.00%
The hold portfolio matches exactly what you deposited, valued at the future price of $60,000.00.
Impermanent loss curve
The curve shows impermanent loss versus holding across the full future-price slider range. The highlighted dot follows the selected future price. Fees are not modeled.
Fees Needed to Break Even
Estimated fee income required to offset impermanent loss.
Required fees to break even: $0.00
30 Days
Daily Fees
$0.00
Monthly Fees
$0.00
Equivalent APR
0.0%
90 Days
Daily Fees
$0.00
Monthly Fees
$0.00
Equivalent APR
0.0%
180 Days
Daily Fees
$0.00
Monthly Fees
$0.00
Equivalent APR
0.0%
365 Days
Daily Fees
$0.00
Monthly Fees
$0.00
Equivalent APR
0.0%
APR = (Required Fees / Initial Investment) × (365 / Days). Fees are rounded to one decimal place. A positive impermanent-loss value means no fees are required because the LP already outperforms holding.
Understanding Impermanent Loss
A beginner-friendly guide to what impermanent loss is, why it happens, and how fees can offset it.
What is impermanent loss?
Impermanent loss is the difference between simply holding your Bitcoin and USDC in a wallet versus depositing them into a liquidity pool. When prices move, the pool automatically rebalances your assets. If the pool ends up with less total value than your original holdings would have, that gap is impermanent loss. It is called impermanent because it only becomes real if you withdraw at the new price.
Why does it occur?
Liquidity pools exist so traders can swap assets. When the price of Bitcoin rises, traders buy BTC from the pool and leave more USDC behind. The pool sells some of your BTC for you. That means you end up with less BTC and more stablecoins than you started with. If BTC keeps rising, you miss out on gains compared with holding the original BTC.
Why concentrated liquidity changes IL
Concentrated liquidity lets you deploy capital within a specific price range. A narrow range earns more fees per dollar because your capital is actively traded against more often. But the trade-off is sharper rebalancing: the same price move causes a bigger shift in your holdings, which can create larger impermanent loss. A wider range is safer but earns lower fees relative to the capital locked.
What happens outside the selected range?
If the price falls below your lower bound, the position is fully converted into Bitcoin. If the price rises above your upper bound, the position is fully converted into USDC. In both cases the position stops rebalancing and behaves like a simple holding of one asset until the price moves back inside the range.
What fees are required to offset IL?
Every swap that passes through your range pays a fee to you. Over time these fees can grow larger than the impermanent loss. The break-even point depends on trading volume, your range width, and how far price moves. The Fees Needed to Break Even panel above estimates the daily fee income required to recover any underperformance versus holding.