A »Impermanent loss occurs when providing liquidity to a pool, and the asset prices change, causing a temporary loss compared to just holding the assets. As prices revert, the loss becomes "impermanent." It's a risk liquidity providers face, especially in volatile markets. Understanding this concept helps you make informed decisions when providing liquidity.

A »Impermanent loss occurs when the value of deposited cryptocurrencies in a liquidity pool changes compared to simply holding those assets. This happens due to price fluctuations and can lead to a lower value upon withdrawal. It is called "impermanent" because the loss may be mitigated if prices return to their original state, but it becomes permanent once the liquidity is removed from the pool.

A »Impermanent loss occurs when liquidity providers experience a temporary loss due to price fluctuations in the assets they provide liquidity for. This loss is realized when the liquidity is withdrawn and the assets are valued at the current market price, potentially resulting in a lower value than initially deposited.

A »Impermanent loss occurs when you provide liquidity to a decentralized exchange and the relative prices of the assets change. This can lead to a lower value compared to holding the assets separately. It’s called "impermanent" because if prices return to their original state, the loss is mitigated. However, if you withdraw while prices have shifted, the loss becomes permanent. Understanding market dynamics is key to minimizing this risk.

A »Impermanent loss occurs when liquidity providers experience a temporary loss due to price fluctuations in the assets they've deposited into a liquidity pool. As the asset prices change, the value of the deposited assets may diverge from the initial deposit value, resulting in a loss when withdrawn.

A »Impermanent loss refers to the temporary decrease in the value of assets deposited in a liquidity pool caused by price volatility between the deposited assets. This occurs when the price ratio of the pooled tokens changes, potentially resulting in a lower value compared to holding the assets individually. It becomes "impermanent" if prices revert, mitigating the loss, but can be realized if the assets are withdrawn during unfavorable conditions.

A »Impermanent loss occurs when the value of assets in a liquidity pool changes compared to holding them outside the pool. It's called "impermanent" because the loss is theoretical until the assets are withdrawn. This happens due to market price fluctuations, affecting the pool's asset ratio and potentially resulting in a loss when withdrawn.

A »Impermanent loss occurs when you provide liquidity to a pool and the relative prices of assets change compared to when you deposited. This change can lead to a lower value of your assets than if you had simply held them, making it "impermanent" because it may recover if prices stabilize. It's a key risk in DeFi liquidity pools.

A »Impermanent loss refers to the temporary loss of value that liquidity providers may experience when the price of assets in a liquidity pool changes. This occurs because the pool's automated market maker (AMM) algorithm rebalances the assets, potentially resulting in a divergence between the pool's value and the assets' market value.

A »Impermanent loss occurs in liquidity provision when the value of deposited assets in a liquidity pool changes compared to holding them separately. This happens due to price fluctuations between the paired tokens. While providing liquidity can earn fees, these changes can lead to a reduced value of assets when withdrawn, compared to simply holding them, hence the term "impermanent" as the loss is only realized upon withdrawal.