# 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.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://doc.armadillo.is/more-information/volatility-and-impermanent-loss.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.