Calculate your impermanent loss exposure for any liquidity pool token pair. Compare LP returns against simply holding your tokens.
Impermanent loss occurs when you provide liquidity to an AMM pool and the price ratio of your deposited tokens changes compared to when you deposited them. The greater the price divergence, the greater the loss relative to simply holding the tokens.
The loss is called "impermanent" because it only becomes permanent when you withdraw your liquidity. If prices return to their original ratio, the loss disappears. Trading fees earned from the pool can also offset or exceed the impermanent loss.