Impermanent loss

A temporary-looking loss in AMMs when token prices move relative to each other.

Explanation

It becomes permanent if you withdraw liquidity after the price divergence. Fees can offset it, but not always.

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FAQ

What does “Impermanent loss” mean?
A temporary-looking loss in AMMs when token prices move relative to each other.
Where is this term used on the site?
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Is this financial advice?
No. These pages provide definitions and safety-oriented explanations, not investment advice.