> For the complete documentation index, see [llms.txt](https://doc.armadillo.is/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.armadillo.is/more-information/volatility-and-impermanent-loss.md).

# Volatility and Impermanent loss

In a volatile marketplace, impermanent loss is almost guaranteed when staking cryptocurrency assets within a standard liquidity pool. Impermanent loss occurs no matter which direction the tokens prices go (for a token trending upward, impermanent loss represents an opportunity cost). The more the tokens diverge, the greater the impact of the impermanent loss. Therefore, the level of the [CVI index](https://cvi.finance/) is a good indicator for the expected impermanent loss that will occur from future market volatility.


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