# Impermanent Losses

Impermanent Losses happen when you provide liquidity into a pool and the two tokens prices change drastically from each other. The APY you earn may not be enough to recover those losses if you are in the pool for a short amount of time.

More info from Binance here: [https://academy.binance.com/en/articles/impermanent-loss-explained](https://academy.binance.com/en/articles/impermanent-loss-explained)​
