Liquidity providers are subject to impermanent loss (IL): a loss that occurs when the price ratio of the two assets that make up the liquidity pair diverges. In any liquidity pool, as the price of each asset goes up or down, the ratio of the tokens you’ve provided will adjust to maintain equal price weighting. IL happens when liquidity is provided to a pool, and during that time the price of the assets change, compared to the price of them when they were added to the pool. The higher the deviation, the higher the exposure to IL. This will happen, no matter which direction the price of the tokens goes.