# AMM-LP IL Hedge

Due to the gamma exposure of the power perpetual, holding both Long and Short positions in a Derion pool results in a combined effect that can negate the impermanent loss experienced by a CFAMM's Liquidity Provider (LP).

<figure><img src="/files/TlOaUayB7KXoAlPTBLJO" alt=""><figcaption></figcaption></figure>


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