Range Boundaries PnL Calculator
for LP and Grid Strategy Design
Know the risk before you start the strategy
When providing liquidity or running a grid trading strategy, most traders don't expect price to hit the exact boundaries of their range — but that's precisely where risk and outcomes become clear.
This page helps you make better decisions before entering a position, by estimating your profit and loss if price moves to either edge of your selected range. Compare concentrated liquidity strategies on Uniswap V3 with a classic grid trading approach, and understand how each behaves in directional moves.
By simulating boundary scenarios, you can quickly evaluate downside risk, upside potential, and choose the structure that best fits your market view. Set your range, define your capital, and see how each strategy performs when it matters most.
Pool Configuration
XYZ / USDCToken Distribution Across Range
Shows how token composition shifts as price moves from $80.00 to $120.00
| Price | Pool Value | Pool PnL | Grid Value | Grid PnL |
|---|---|---|---|---|
| $80 | $851,73 | -14.83% | $850 | -15% |
| $82 | $872,31 | -12.77% | $865 | -13.5% |
| $84 | $891,49 | -10.85% | $880 | -12% |
| $86 | $909,32 | -9.07% | $895 | -10.5% |
| $88 | $925,85 | -7.42% | $910 | -9% |
| $90 | $941,12 | -5.89% | $925 | -7.5% |
| $92 | $955,18 | -4.48% | $940 | -6% |
| $94 | $968,06 | -3.19% | $955 | -4.5% |
| $96 | $979,8 | -2.02% | $970 | -3% |
| $98 | $990,43 | -0.96% | $985 | -1.5% |
| $100 | $1000 | +0% | $1000 | +0% |
| $102 | $1008,53 | +0.85% | $1005 | +0.5% |
| $104 | $1016,05 | +1.61% | $1010 | +1% |
| $106 | $1022,59 | +2.26% | $1015 | +1.5% |
| $108 | $1028,18 | +2.82% | $1020 | +2% |
| $110 | $1032,85 | +3.29% | $1025 | +2.5% |
| $112 | $1036,62 | +3.66% | $1030 | +3% |
| $114 | $1039,51 | +3.95% | $1035 | +3.5% |
| $116 | $1041,55 | +4.15% | $1040 | +4% |
| $118 | $1042,76 | +4.28% | $1045 | +4.5% |
| $120 | $1043,15 | +4.32% | $1050 | +5% |
Uniswap V3 LP
Grid Trading
Side-by-Side Comparison
| Scenario | Uniswap V3 | Grid Trading |
|---|---|---|
| Price → $80.00 | -14.83% | -15.00% |
| Price → $120.00 | +4.32% | +5.00% |
Why Simulating Range Boundaries Matters
Most liquidity providers and grid traders focus on fees and profit from mean reversion — but rarely model what happens if price exits their range. Understanding boundary PnL is the first step to building a resilient strategy, whether you're running a Uniswap V3 position or a grid bot.
Sizing a Short Hedge for LP Positions
Concentrated liquidity on Uniswap V3 exposes you to significant impermanent loss when price moves directionally. By knowing the exact PnL at each boundary, you can open a short position on a perpetual or margin platform to offset part of the downside. For instance, if the range shows a −12% loss at the lower bound, you can size a short that recovers that amount if price drops. However, keep in mind that a hedge that fully covers the downside will generate losses if price moves in the opposite direction — the short would lose money as price rises, partially offsetting or exceeding pool gains at the upper bound. The goal isn't to achieve perfect delta neutrality across all scenarios, but rather to choose a hedge size that balances the downside protection you need against the upside cost you're willing to accept. Use the hedge toggle above to visualize different short sizes and find the sweet spot for your risk profile.
Hedging Grid Trading Exposure
Grid trading accumulates inventory as price moves against you: more tokens bought on the way down, more sold on the way up. This tool lets you see the net cost of holding that inventory at the extreme, so you can decide whether to add a counter-position. A common approach is opening a short equal to the grid's average directional exposure, effectively locking in the grid's realized profit while capping the downside.
Comparing Strategies Before Committing Capital
Not all ranges behave the same across strategies. A tight range amplifies fees in Uniswap but magnifies impermanent loss. In grid trading, a tight range means fewer grid levels and less averaging. Use this framework to compare both side by side and pick the one that aligns with your market thesis — whether you expect a ranging market, a breakout, or a slow drift.
Building Confidence in Your Risk Framework
The most important number in any trading strategy isn't the expected return — it's the maximum drawdown you're willing to accept. By simulating boundary scenarios upfront, you enter every position knowing exactly what you stand to lose in the worst case, and that clarity is what separates disciplined capital allocation from gambling.