Free crypto tool
Uniswap V3 Impermanent Loss Calculator
Model concentrated-liquidity impermanent loss for your price range, and see how much it amplifies a full-range position.
Impermanent loss (V3)
-4.58%
Position is in range
Full-range (V2)
-0.41%
Amplification
11.1x
Price move
20.0%
How concentrated-liquidity impermanent loss works
Uniswap V3 lets you concentrate liquidity into a chosen price range instead of spreading it from zero to infinity like V2. That boosts the fees you earn while price is inside the range, but it also amplifies impermanent loss for the same price move, often several times over.
This calculator values your position along the V3 liquidity curve at the current price and compares it to simply holding the tokens you started with. The amplification figure shows how many times worse the concentrated IL is than a full-range V2 position. When price leaves your range, the position converts fully into one asset and stops earning fees.
A tighter range earns more fees but risks going out of range faster, it is a trade-off you have to manage. Otomato can alert you when a V3 position approaches the edge of its range, so you can rebalance before you stop earning.
The complete guide
Why V3 concentrates the risk as well as the reward
Uniswap V2 spreads your liquidity evenly across every possible price, from zero to infinity. Uniswap V3 lets you pack that same capital into a narrow band around the current price, so it does far more work and earns far more fees while price stays inside the band.
The trade-off is that the same concentration multiplies impermanent loss. For an identical price move, a tight V3 range can lose several times what a full-range V2 position would, which is the amplification figure this calculator surfaces.
Managing your range
The core decision in a V3 position is how wide to set the range. Tighter earns more fees per dollar but goes out of range faster; wider is closer to V2, safer but lower yield.
- In range: you earn fees and hold a mix of both tokens.
- Out of range: the position becomes 100% of one token and stops earning.
- Rebalancing back into range realises any impermanent loss and costs gas.
Because going out of range silently stops your fee income, the positions that suffer most are the ones nobody is watching. Otomato can alert you as a V3 position drifts toward the edge of its range so you can act deliberately.
Frequently asked questions
- Why is impermanent loss worse on Uniswap V3?
- Uniswap V3 concentrates your liquidity into a chosen price range, which boosts fees while you are in range but also amplifies impermanent loss for the same price move. The tighter the range, the higher the capital efficiency and the larger the IL if price drifts, so V3 IL is typically several times a full-range V2 position.
- What happens when price leaves my range?
- When price moves outside your lower or upper bound, your position converts entirely into the losing side of the pair and stops earning fees. It behaves like a limit order that filled. You keep whatever the position is worth, but you no longer collect fees until price re-enters the range.
- Do fees make up for concentrated-liquidity IL?
- Often yes, if you pick a sensible range and price stays active within it, the extra fee income can outweigh the amplified IL. This calculator shows price-driven IL only. Otomato can alert you when a V3 position drifts toward the edge of its range so you can rebalance before you stop earning.
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Get told before your LP goes out of range
Otomato detects your Uniswap V3 positions and alerts you as price approaches your range bounds, so you never stop earning fees unnoticed.
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