LP farm

As I understood if my target price on eth/usdt is between 1400-1600usdt per eth and I deposit 500 usd on each asset.

Let’s say the price drops to 1300, then my asset will still be worth 1000 usd + the fee, because it has rebalance to usdt. is it correct or do I have wrong ?

If so, when will I face IL loss?

LP farm