> For the complete documentation index, see [llms.txt](https://deliqfinance.gitbook.io/deliq-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://deliqfinance.gitbook.io/deliq-finance/additional-details/impermanent-loss-mitigation.md).

# 🚨Impermanent Loss Mitigation

To mitigate impermanent loss for Liquidity Providers, there are several mechanisms used in addition to DLQ acting as network collateralization.

 Deliq tries to ensure that LPs can withdraw the same quantity of assets they initially deposited into the system. This approach combined with other specifics of the protocol allows for rebalancing of assets that should prevent a net loss on the protocol level except in extreme market conditions.

 If a certain percentage of the assets deployed are requested to be withdrawn by the LPs (taking into account new deposits), bailout mechanics may become necessary in order to make the LPs whole, while simultaneously keeping the PCA in a net-neutral state:

1. Deliq makes LPs whole by drawing the asset in deficit from the PCA reserve
2. Deliq draws system-wide asset surpluses into the PCA (this will cover a large portion of the net-negative asset flow from the PCA reserve)

In the event a specific token pool receives a large amount of withdraw requests, and that deployed liquidity had faced a certain amount of IL, *and* the protocol’s reserve of assets cannot cover the immediate amount requested to be withdrawn, the DLQ staked to that pool comes into play as a backstop.


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