The Crimson Bench

ProCrypto · Simulator

Impermanent Loss Simulator

The hidden cost of providing liquidity.

Assumptions

Impermanent loss

-2%

Price ChangeImpermanent Loss
+25%-1%
+50%-2%
+100%-6%
+200%-13%
-50%-6%

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Every row, plus Excel/PDF export and AI analysis.

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Toolkit Pro

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Built by The Crimson Bench · Educational model, not financial advice

About the Impermanent Loss Simulator

Enter a price change in one paired asset to see the impermanent loss versus simply holding — the risk every DeFi liquidity provider takes.

It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.

How the Impermanent Loss Simulator Works

The model takes 1 assumptions and returns 1 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.

The Inputs

AssumptionExample value
Price change of one asset50%

Worked Example

Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.

Impermanent loss

-2%

Price ChangeImpermanent Loss
+25%-1%
+50%-2%
+100%-6%
+200%-13%
-50%-6%

The Operator's Read

Impermanent loss is what you give up versus just holding the two assets — the more one asset moves, the larger it grows. Trading fees earned must exceed this loss to make liquidity provision worthwhile. Educational only.

Assumptions & Limitations

  • The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
  • Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
  • It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
  • This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.

Frequently Asked Questions

What does the Impermanent Loss Simulator calculate?

Enter a price change in one paired asset to see the impermanent loss versus simply holding — the risk every DeFi liquidity provider takes. It takes 1 assumptions — Price change of one asset — and returns Impermanent loss, along with a full projection table you can export.

How do I use the Impermanent Loss Simulator?

Enter your own figures in the input fields above — Price change of one asset, and the rest. The model recalculates instantly and shows the resulting Impermanent loss and full breakdown. No sign-up needed to run it.

Is the Impermanent Loss Simulator free?

Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.

What's the difference between this and a free calculator?

A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.

Who built the Impermanent Loss Simulator?

The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.

Is this financial advice?

No. The Impermanent Loss Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.

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The Crimson Bench · Est. 2002 · Founded in New York City

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