Impermanent loss

Impermanent loss (IL) is the difference between the value of your LP position and the value you would have had by simply holding the same tokens. It appears whenever the price of the pair moves away from where you entered, in either direction.

It happens because the pool rebalances you automatically: as one token rises, the pool sells it to traders, and as it falls, the pool buys more of it.

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Why “impermanent”

If price returns to where you entered, the loss disappears. If you withdraw while price is elsewhere, it becomes permanent. Fees earned along the way offset it, and on a healthy pool they often outweigh it.

How Invictus shows it

Every position shows PnL against holding, updated every block, so you can see at a glance whether fees are winning. Positions →