ASome token A
BSome token B
Your range can support swaps here.
Price is B per A. Token mix is illustrative; fees are separate.Price changes your token mix, even when you make no changes yourself.
Sources
Concentrated liquiditySource checks: 2026-09-16
← → Navigate · F Present · Esc Exit
Recap & examples
Price shows B per A
When price means B per A, rising price trades A into B. Below the range you hold A; above it you hold B.
Outside the range is a pause
Your position stops serving trades at outside prices and holds one token. It is not automatically liquidated. Earlier CL fees remain, and trading can resume if price returns.
Compare the same starting tokens
Compare LP value with holding your original token amounts. The starting mix depends on entry price and your range limits.
ILLUSTRATIVE EXAMPLE
Predict the remaining token
Use an entry price of 2,000 B per A and a range from 1,600 to 2,400. Move the price to 1,500, then to 2,600.
What this means
At 1,500 the position holds A only. At 2,600 it holds B only. Token values still change outside the range.
Key idea: A range can trade in either direction until you withdraw the liquidity.
Try the idea
Predict, then move the priceAdvanced Risk Check
- A tighter range does not guarantee a higher return. Compare token values, active trading, time outside the range, and management costs.
- A range order can reverse while it stays open. It does not guarantee conversion at one exact price and is not a stop-loss.
- Compare with holding the exact starting token amounts; a range need not start with equal dollar amounts of both tokens.
Full explanation & example
Always say which way the price is quoted. At 2,000 B per A, one A costs 2,000 B. As that price rises through an active CL range, the position exchanges A for B; as it falls, the position exchanges B for A. Inverting the quote reverses the visual direction, so token labels matter.
A range is an instruction about where assets are available for trading. It is not a price guarantee and it does not liquidate the LP when price exits. Outside the range, the resulting one-token position continues to change in dollar value with that token.
A fair holding comparison begins with the LP's actual starting amounts. Do not substitute a 50/50 basket unless the selected bounds and entry price really produce that mix. The lab calculates the mix before comparing the two outcomes.
An above-market selling range and a below-market buying range can act like gradual limit orders. They do not provide a conventional stop-loss: a below-market LP range initially needs the buying asset, and conversion can reverse when price retraces before withdrawal.
The $1,000 wide-range example
Use entry 2,000, lower bound 1,600 and upper bound 2,400, with B fixed at $1. The initial inventory is approximately 0.226072 A and 547.855626 B. At an ending price of 1,500, the position is below range and holds A only.
Before fees and costs, the LP is worth about $798.50 versus $886.96 from holding the original amounts: an $88.46 inventory shortfall. This is a conditional example, not a price forecast.
Common mix-ups
“A range 20% either side of entry must start 50/50.”
CL amounts depend on both bounds and the square-root price relationships; simple percentage symmetry does not ensure equal token values.
“Once a range order converts, the result is final.”
The liquidity remains available in both directions until removed. A retrace can undo the conversion.
Discussion question
Price exits a range and then returns. Are fees from before the exit lost?
Show the answer
No. Existing accrued CL fees are not erased by the price crossing a bound. New fee participation stops at outside prices and can resume when trading returns to the range, subject to the fee configuration.
Sources
Concentrated liquidityUniswap v3 whitepaper · CL mathematicsTechnical fee mechanicsRisk disclosuresSource checks: 2026-09-12 · 2026-09-16