# Risks of Providing Liquidity ### The following are some known risks of providing liquidity, this list is by no means exhaustive and we urge users to do their own research. Impermanent Loss: Occurs when the price of the tokens in your range moves significantly compared to when you deposited them. * Mitigated by providing liquidity for stable pairs (e.g., USDC/DAI) or using wider ranges. Inactive Positions: If the market price moves outside your range, you stop earning fees. * Requires active monitoring and adjustment. --- # 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://docs.datadex.com/risks-of-providing-liquidity.md?ask= ``` 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.