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Two points:
Conversion is "lossy", as others have said, in that there is likely some loss when converting from one format to another. Formats differ in what they support (metadata, text formatting, images, ...). Any not supported by the target format gets omitted or altered.
Conversion is "not lossy" in that the resulting file is a copy of the original. The original is not damaged or altered in any way. There is no need to delete the original after conversion. If you switch to a different device later you still have the original to either read (if the device supports that format) or use for a new conversion as necessary.
BTW, if you are converting ePub to MOBI for use on the Fire then you might consider using KindleGen2, either stand alone or via Kindle Previewer 2, for the conversion. It will create the new KF8 formatted partition that supports a much wider range of formatting (all of what ePub2 supports, I believe) and that the Fire will use.
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