How Impermanent Loss Worksheets Stay Honest
Educational IL worksheet: valueFactor = 2√r/(1+r); IL% = (valueFactor − 1)×100. Not a live pool simulator.
Free Calculator Hub Editorial Team
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How Impermanent Loss Worksheets Stay Honest
Educational IL worksheet: valueFactor = 2√r/(1+r); IL% = (valueFactor − 1)×100. Not a live pool simulator. This article walks through the arithmetic without pretending the worksheet is a live quote.
Educational only
Educational worksheet only—not LP advice. Assumes the classic constant-product IL approximation; fees and multi-asset pools are omitted.
The Question a Worksheet Can Answer
For constant-product pools, value vs HODL ≈ 2√r/(1+r). IL% = (factor − 1)×100.
Inputs Worth Labeling
Practical habits
- Enter the new price ratio relative to entry (r > 0).
- Review value factor vs HODL and impermanent loss percent.
Formulas
- Value factor vs HODL: 2√r / (1 + r)
- IL percent: (valueFactor − 1) × 100
Common Mistakes
Treating blog tips as live rates, mixing currencies, and comparing scenarios with different horizons. Keep labels explicit.