# Index Volatility

There are, however, 3 external factors that might affect the strategy:

1/ Impermanent loss due to price volatility + assets weight changes as people mint/redeem glp&#x20;

2/ Trader’s profit and losses from GLP pool&#x20;

3/ Volatility from small assets in the pool (Link, Uni)

<figure><img src="https://2541464900-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFADMrHxwibpHbq6Hgt82%2Fuploads%2FXt0qNmsBWNh8G7ZOyAAZ%2Fspaces_C4KlYFbprd6jxSeR0Bp0_uploads_TTpx86uiRUP41d3a6ZjP_Capture%20d%E2%80%99e%CC%81cran%202022-11-24%20a%CC%80%2012.webp?alt=media&#x26;token=2feb1aeb-559b-4ee7-a7ba-824bae0323dd" alt=""><figcaption></figcaption></figure>
