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Mixing Potassium Iodide and concentrated hydrogen peroxide will create a very exothermic reaction that vaporizes a lot of water. This steam comes out of the flask and looks like a genie coming out of the magic bottle. It's not magic, its chemistry!

In any reaction, reactants turn into products. Here, the products have very strong bond energies, but low potential energy. It's like the reaction proceeds similar to a rock rolling downhill, to lower potential energy. When comparing this to the initial state, the extra energy is release in the form of heat that makes the steam.

Change in energy (enthapy) = bonds broken- bonds formed

In this case, the bonds formed are stronger than the bonds broken, the change is negative (exothermic).