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Is there any risk of losing your funds by being

a liquidity provider?

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HEX's price went up the fastest when its liquidity was the lowest. Bitcoin's price went up the fastest when its liquidity was lowest. Ethereum's price went up the fastest when its liquidity was the lowest.

You can't really lose your funds in a trustless DEX contract except if the DEX contract or the contract of one of the two currencies fails due to a bug. But you can easily lose value due to impermanent loss. Sometimes the fees and LP rewards can compensate that, but not always.

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