While the selling of a pool's unbound tokens is restricted to a small range around their moving average prices, it is still possible for a liquidity provider to experience permanent loss due to the way that unbound tokens are handled. If an LP exits a pool after a token is removed from the pool, but before its balance is swapped to the other underlying assets, the LP will suffer a loss of around 1% of their pool tokens' value (as 1% is the minimum weight of the pool).