Is Impermanent Loss a Guaranteed Loss for an LP?
No, impermanent loss is not a guaranteed loss. It is only realized if the LP withdraws their assets when the price ratio is divergent.
If the asset prices return to the ratio at which the LP deposited, the impermanent loss is zero. Furthermore, if the accrued trading fees exceed the impermanent loss, the LP can still realize a net profit.
It is a temporary opportunity cost, not a certainty.
