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Impermanent loss
The shortfall liquidity providers can face versus simply holding, when the prices of pooled tokens move apart.
Example: you add equal values of ETH and a stablecoin to a pool. If ETH doubles, arbitrage leaves you with less ETH than you deposited, and your position is worth less than if you’d simply held. The loss is “impermanent” only if prices return. Fees may or may not make up for it.