Impermanent loss is usually the first concept LPs learn. Unfortunately, it becomes the only lens many LPs use. That creates blind spots.
The biggest driver of LP outcomes is not a single IL calculation. It is the interaction between volatility regimes and the behavior of price around your range boundaries.
LP risk is a bundle of mechanisms: time in range, inventory drift, re-centering drag, and regime persistence. If you reduce that bundle to “IL,” you will misdiagnose why positions fail.
Many LPs treat APR like a reward signal. In reality, APR often spikes when the market is unstable. In that case, APR is closer to hazard pay than opportunity.
Without structure confirmation, “high APR” can be a flag that conditions are deteriorating.
Markets communicate through behavior at boundaries. A single break can be noise. Repeated breaks with follow-through are a message: the range is not being accepted.
LP Regime focuses on this behavioral layer because it predicts whether fees can realistically accrue.
Impermanent loss describes a mechanism. Regime quality describes the environment that decides whether that mechanism dominates your outcome.