| Price Change | New Price A | HODL Value | LP Value | IL Amount | IL % | Severity |
|---|
Concentrated liquidity provides higher fee earnings in range, but risk of total IL if price exits range.
How long to earn enough fees to offset IL?
Impermanent Loss (IL) occurs when the price ratio of tokens in an AMM pool changes from when you deposited. It's the difference between holding vs providing liquidity.