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# What is Impermanent Loss and How to Avoid it

![](https://2454253789-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MbZMlY1zr6-eIn_VeR9%2Fuploads%2FdtTJo9csNcdBzVEmepL7%2Fcbn.jpg?alt=media\&token=fdfa09f3-cb0d-4496-99ff-ea338ed726d2)

One of the downsides of yield farming in [#defi](https://twitter.com/hashtag/defi?src=hashtag_click) is an impermanent loss. This occurs especially during volatile market conditions. Find out more about Impermanent loss and how to avoid it here.

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