What it means
Impermanent loss can make providing liquidity less profitable than simply holding assets.
Why it matters
It is important to understand before using liquidity pools.
Common mistake
Do not treat Impermanent Loss as a universal rule. Exchanges, wallets and card apps may use the same term differently, especially around limits, fees, networks and account restrictions.
User action
Before relying on this term, check the provider's official help page, fee schedule or product terms. If funds are involved, test with a small amount first and keep a record of the transaction or setting.
Related pages
Continue with Liquidity pool or return to the crypto glossary.
How to use this term
Use Impermanent Loss as a practical checkpoint when comparing exchanges, wallets, cards or on-chain tools.
What to check
Check how the term appears in fees, limits, account rules, wallet flows and risk notes before making a platform decision.