LPRegime watermark

LP ON vs LP OFF: A Decision Framework

A structure-first framework for deciding when LP deployment is allowed.

LP Regime treats deployment like a decision gate. The gate is not “APR.” The gate is structure.

LP ON means the market is behaving in a way that allows ranges to function. LP OFF means the market is behaving in a way that punishes ranges regardless of how attractive yield appears.

LP ON is not bullish

LP ON does not require predicting direction. It requires observing behavior: acceptance, controlled breaks, and sufficient time-in-range.

LP OFF is not bearish

LP OFF is not a call that price will go down. It is a call that the environment is currently hostile to range-based fee capture.

The point of the framework

Most LP mistakes are not caused by bad math. They are caused by deploying into the wrong regime. A decision framework exists to prevent forced deployment when structure says “no.”

Yield is not a reason to deploy. Yield is what you earn after the environment permits deployment.

Last updated: February 07, 2026 · Back to Research