Impermanent Loss occurs when you provide liquidity to a decentralized exchange (DEX) and the price of the tokens you’ve deposited changes relative to when you initially deposited them. This can result in a lower value of your assets when you withdraw them compared to simply holding the tokens in your wallet. It’s called "impermanent" because the loss is only realized if you withdraw your liquidity while the price difference exists; if the prices return to their original state, the loss can be reversed.