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Liquidity pools

LP Out-of-Range Stress Calculator

A price move can turn a concentrated-liquidity position into a balance of only one token. This calculator examines that transition by calculating inventory at both an initial price and a final stressed price. It then values the final LP inventory in token B and compares it with simply holding the original token quantities at the same final price. All prices and liquidity parameters are browser-local inputs. The comparison isolates inventory effects in an idealized fixed position, without fee earnings, liquidity adjustments, or changes to the chosen range.

Enable JavaScript to edit assumptions, calculate and compare a baseline locally. The formula and methodology below remain available without JavaScript.

Value both choices at the final price

For each price, clamp it to the lower and upper bounds before applying the concentrated-liquidity inventory formulas. Final LP value is final A × final price + final B. Hold value is initial A × final price + initial B. Their difference is final LP value minus hold value; divide by hold value for the percentage gap when hold value is positive. Using one final valuation price makes the alternatives comparable.

Follow a move to the upper boundary

Take hypothetical L = 100 and a range from 1 to 4 B per A. At an initial price of 2.25, inventory is about 16.6667 A and 50 B. At a final price of 4, LP inventory is 0 A and 100 B, worth 100 B. Holding the starting tokens would be worth about 116.6667 B, so the modeled LP value is 16.6667 B lower, approximately 14.29%.

Interpret prices beyond the active range

Above the upper bound, inventory remains all B in this fixed-position model; below the lower bound, it remains all A. Valuation still uses the actual final price, even though inventory calculations use the clamped price. This distinction matters especially below the range, where the all-A balance continues changing value in B. The comparison excludes fees and rebalancing costs and does not estimate how long the position stays outside its range.

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Save selected inputs and research notes explicitly in this browser. Compare assumptions and restore a saved setup without submitting a trade. JavaScript enables the controls.

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