> For the complete documentation index, see [llms.txt](https://docs.zilswap.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zilswap.io/how-to/provide-liquidity/impermanent-loss.md).

# Potential Risk: Impermanent Loss

### Impermanent Loss

Providing liquidity may expose you to **impermanent loss**. [“impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.” - Nate Hindman](https://blog.bancor.network/beginners-guide-to-getting-rekt-by-impermanent-loss-7c9510cb2f22)​

Watch this video to learn more on impermanent loss:

{% embed url="<https://youtu.be/8XJ1MSTEuU0>" %}