in crypto, we often talk of 'impermanent loss' in the context of constant product swaps but ive been thinking recently about what might be the nature of 'permanent loss' and its associated hedges in comparison- the mathematical intuition behind integrated var swap hedging techniques ultimately use the idea of replicating an infinite strip of options weighted by 1/K^2, and the practical idea here of course is that nothing is permanent if you can dynamically hedge for expected outcomes with weights (ie weigh likely events higher than unlikely events). what that means is you really need two variables to define what is impermanence itself - 1) energy (for the asset to move), and 2) time (for movement happens across the dimension of time) in that system then, the nature of permanent loss must originate from the discrete recognition that it happens when there is either no energy or no time. And that makes sense because physics teaches you energy = power/time, and so it must mean power is zero (and sadly zero bound conditions are inherently unhedgable). though could it also mean infinite? might the answer lie in that the quality of permanence also happen via infinity, and if so is there a hedging technique that is possible? as humans, the only variable we really have control over is time because time, unlikely energy (which is fixed), is relative. so time is both amazing and frustrating because we can perceive it differently based on our own frame of mind. for example, there are two ways you can lose track of time: the first is when you are fully alive living in the moment of extreme experience, and the second is when you are in a state of complete stillness, a trance of ennui. both are moments when you lose sense of time. when time is either zero or infinite. as we get older, its easier to fall into the latter than the former: the constant routines of the daily commute, the daily tasks associated with children, the repetitive milestones of anniversaries and earnings calls, the P&L by fiscal calendars. but these are all traps of the brain that make time flat in the wrong way. that is when time becomes zero the hedge against permanent loss then is to seek infinity by active living. to keep taking as many 'firsts' as possible (even if each first may be the last), to dance more, risk more, to feel the highest peaks of joy and troughs of sadness, to be alive. to make time feel infinite the hedge to permanent loss therefore exists in the seams of moments to find infinity. some people access this via religion, others via drugs, etc but the truth is i'm not sure i personally have really found my own strategy nor asked myself very deeply. bitcoin can feel like a religion and a drug, but it doesn't really provide a sense of infinity (perhaps by design!). as i think about how volatile the macro world is becoming that is further distorting our sense of living in the moment, perhaps its time to dedicate some space to actively finding out what that means, to find a permanent hedge for the impermanence of life. i think its a worthy pursuit and tribute for the people that came before us, and the people that will be here after us