LP performance depends on one thing you can observe without predicting: does the market spend time where you provide liquidity?
That question is answered by acceptance versus rejection.
Acceptance is repeated trading inside the range with meaningful dwell time. Price may touch edges, but it comes back. The range behaves like a “home base,” not a one-time stop.
Acceptance supports fee accrual because volume occurs where your liquidity sits.
Rejection is fast exits with follow-through. Price crosses the boundary and continues without returning. Even if it returns later, the time out of range is enough to destroy the fee profile you expected.
One candle outside the range can be noise. A sequence of boundary failures is structure. LP Regime focuses on repeated behavior because that is what determines whether a range has a future.
Acceptance is rent. Rejection is eviction.
Acceptance supports LP ON. Rejection supports LP OFF. The purpose is not to “call direction.” The purpose is to align deployment with the environment.