The impermanent loss calculator provides the calculation function of impermanent losses, helping liquidity providers better manage their own risks, predict potential losses in advance, and choose reasonable tools to hedge against price fluctuations.
The impermanent loss calculator is a safe and reliable tool that is not connected to the internet, does not collect data, and only provides calculation functions.
Impermanent losses refer to the losses faced by funds in the liquidity pool. This loss is usually caused by a deviation in token prices, and when prices return, the impermanent loss also disappears. When we deposit a pair of tokens into the liquidity pool, if the price of the tokens changes, the total price obtained by removing them is slightly lower than holding these two tokens directly, and the lower part is the impermanent loss.