Does the CLOB Model Inherently Eliminate the Risk of Impermanent Loss for Participants?

Yes, the CLOB model inherently eliminates the specific risk of impermanent loss as defined in AMMs. Impermanent loss is a direct consequence of the AMM's rebalancing formula.

In a CLOB, participants either trade at a set price or hold their assets. Market makers face different risks, such as inventory risk (holding an asset that declines in value), but not the formula-driven opportunity cost of IL.