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March 14, 2026
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Glossary

Impermanent Loss

Impermanent Loss

A temporary loss experienced by liquidity providers in AMMs when the price ratio of deposited token pairs changes.

Frequently Asked Questions: Impermanent Loss

What is Impermanent Loss?

A temporary loss experienced by liquidity providers in AMMs when the price ratio of deposited token pairs changes.

Why is Impermanent Loss important in cryptocurrency?

Impermanent Loss is a key concept in the cryptocurrency and blockchain ecosystem. Understanding Impermanent Loss helps investors, developers, and users navigate the digital asset space more effectively.

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