The gap between the value of tokens held in a liquidity pool and the value of simply holding those same tokens.
Last verified 13 September 2026 · written by the DexLadder team
What it means
The gap between the value of tokens held in a liquidity pool and the value of simply holding those same tokens.
Why it matters when you trade
It is not a fee or a hack; it is the arithmetic of being the market's counterparty. As price moves, the pool rebalances against you — selling the winner, accumulating the loser. It is called impermanent because it reverses if price returns, and it becomes permanent the moment you withdraw. Fees are the compensation; whether they cover it is the entire question of being a liquidity provider.
Worked example
For a constant-product pool, a 2x move in one asset costs about 5.7% versus holding; a 4x move costs about 20%; a 5x costs roughly 25.5%.
See it on live markets
DexLadder runs impermanent loss against live market and pool data, with simulated capital, so you can watch it act on an order instead of reading about it — no account, no wallet, nothing installed.