How is the impermanent loss calculator?

So, how exactly does the impermanent loss calculator work? Is it accurate in determining potential losses for traders participating in liquidity pools? Can it provide real-time updates on market fluctuations that could impact these losses? Are there any limitations or factors that should be considered when using this tool? Understanding its capabilities and potential drawbacks would be incredibly valuable for those interested in leveraging decentralized finance (DeFi) strategies.