Intent-Code Divergence
Medium
- Confidence
- 98% confidence
- Finding
- The impermanent loss function is mathematically incorrect for standard AMM/CLMM IL and returns positive values for upward price moves (for example, sqrt(2)-1), which contradicts the notion of loss. In a DeFi optimizer context, this can materially misstate downside risk, mislead users into unsafe liquidity decisions, and distort downstream rebalancing recommendations.
