Figure 4 — Yodacom Research · LPIS Series · 2026-06-15
Impermanent Loss by Price Scenario: The Tighter the Range, the Sharper the Exposure
IL vs. 50/50 HODL benchmark · Concentrated LP range [−30% lower / +40% upper] · Exact Uniswap v3 CLMM formula (Adams et al. 2021) · Gross fee income breakeven shown where applicable
0% −10% −20% −30% −40% −50% Impermanent Loss vs. HODL IN RANGE — RXI may remain deployed OUT OF RANGE — RXI should signal exit 0.00% Flat / sideways price unchanged No IL — full fee accrual −2.3% +10% price drift still in range Well covered by fee income −16.6% +30% sustained approaching upper band Significant IL — RXI gate should signal exit −11.4% −20% drift still in range Covered in ranging regime −29.4% −30% exits lower band — out of range RXI gate should trigger exit before this point −46.7% −50% crash tail risk Tail risk — RXI reduces frequency, not magnitude Fee breakeven at 30% gross APY
Range width tradeoff at +30% price move (IL stress-test, RES-LPIS-VALIDATION-01, Table 2.2)
Tight Range [−30%, +40%]
−16.6%
IL at +30% move (still in range)
Highest fee concentration
+40% exit triggers full USDC conversion
Medium Range [−40%, +60%]
−12.3%
IL at +30% move (still in range)
4.3pp less IL vs tight
Moderate fee concentration
Wide Range [−60%, +100%]
−9.3%
IL at +30% move (well in range)
Lowest fee concentration
Stays in range through ±60%
Key insight: Range width does not change the fees/IL ratio in isolation — it changes which price scenarios you're protected against. Tight ranges earn more when price stays in range; they're punished more when price exits. The Fibonacci tool targets the range that maximizes time-in-range based on historical price density.
234%
Gross annual fee APY required to break even against −46.7% IL at a −50% price crash. No fee tier on any DEX approaches this. A −50% crash cannot be fee-income-hedged. The RXI gate's job is to reduce the frequency of this scenario — not to protect against it when it occurs. Tail risk remains.
Data source: IL values calculated using exact Uniswap v3 concentrated LP formula (Adams et al. 2021 whitepaper; Atis Elsts 2021 technical note). Range: [Pa = entry × 0.70, Pb = entry × 1.40] (−30% lower / +40% upper). Price scenarios and IL figures from RES-LPIS-VALIDATION-01, Table 2.2, using the tight Fibonacci-derived range. Range width comparison (tight / medium / wide) from RES-LPIS-OPTIMIZE-01, Part 3. The 234% breakeven figure is calculated as: 46.7% IL / annual period = gross fee APY required; actual computation reflects the formula, not a simulation output. Fee breakeven reference line assumes 30% gross APY (B-tier upper bound). RXI loss-frequency reduction measured for B-tier Arbitrum: 35.0% loss-frequency weeks (RXI-gated) vs. ~42% (always-in passive), per RES-LPIS-EMPIRICAL-01, Section 4.