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 estimates profit and loss if price moves to either edge of a selected range. It lets you compare the modelled boundary behaviour of a concentrated Uniswap V3 position and a classic grid.
Use the controls to inspect downside and upside scenarios. The output describes only the assumptions entered here; it does not select a suitable structure or predict market behaviour.
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 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 modelled 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, in this model, would offset 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 see how each one changes the result at both edges.
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. One approach is opening a short equal to the grid’s average directional exposure: in this model it offsets part of the loss at the lower edge, but it loses money if price rises instead, and it does not remove the risk.
Comparing Strategies Before Committing Capital
Not all ranges behave the same across strategies. A tight range concentrates activity 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 see what the model estimates you could lose at each edge before you enter a position. It is an estimate, not a worst case: price can move beyond the range, and real costs and execution can make the loss larger.