Standard constant-product loss against fee income over your holding period.
A worked example
Starting figures
- Price change of one asset
- 80%
- Fee APR
- 18%
- Days in the pool
- 180
What it returns
- Impermanent loss
- -4.17%
- Fees earned
- 8.88%
- Net effect
- 4.71%
How to read the results
Loss is 2·sqrt(r)/(1+r)−1 for a price ratio r, compared against fee APR over the period.
With the defaults above, impermanent loss works out at -4.17%.