# How to reduce IL

High Frequency LP gives turbo fee-generation, but there is always Impermanent Loss (IL), and there is no avoiding it in liquidity providing. The goal is to OUTPRINT IL, while mitigating IL. Here’s how:

1. **Wider LP ranges**
   * High Frequency Liquidity prints hard from tight real-time rebalancing LPs. You can mitigate IL by setting slightly wider ranges. Tradeoff is less concentrated (but possibly more sustainable) fee generation.
   * :bulb:Alpha: Set LP widths based on expected volatility of token
   * :bulb:Alpha: Slow weekends with muted price action are great for HFL
2. **Slower auto-rebalances**

   * 0 minute real-time rebalances maximize in-range fee generation, especially for high vol pools. But sometimes you can set 5-15 minute rebalances instead to avoid adverse IL from extreme pumps/dumps

     Tradeoff is less in-range (but possibly more sustainable) fee generation

   <figure><img src="/files/QhxvpXFOl3HO78Q3V8t3" alt=""><figcaption></figcaption></figure>
3. **Directional auto-rebalances**

   * Set HawkFi to rebalance when token price goes up-only, instead of up & down. Rebalances amplify positive IL upwards, and negative IL downwards.
   * Tradeoff is significantly less fee generation, but up-only rebalances are suitable for steady long-term fee generation of high-conviction tokens

   <figure><img src="/files/C1WzqXifCddnbPvhEwcb" alt=""><figcaption></figcaption></figure>
4. **Strict Entries & Exits**
   * Only enter LPs when A) Token price trades sideways/upwards, and B) Volume is high
   * Avoid & immediately exit when A) Token price dumps, or B) Volume dries up
5. Set Stop Loss at lower bounds of LP price range

<figure><img src="/files/MWYiCX2HtgFZFXko0OY0" alt=""><figcaption></figcaption></figure>


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