The IP$-$based load$-$balancing method has the following disadvantages.

$-$Changes on the physical network are required.

$-$ VMs that communicate with multiple IP addresses have a potentially higher throughput.

$-$The load is more evenly distributed compared to the route based on the originating virtual port and the route based on source MAC hash because the virtual switch calculates the uplink for every packet.

$-$Resource consumption is the highest compared to the other load$-$balancing algorithms.