Position Simulator FAQs
Quick start
Navigate to the Pools page
Select a pool
Set a price range and (optionally) enter a deposit amount
Open Position Simulator (found right under the chart)
Click/drag the chart marker to set a Selected price
Set Time In-Range and pick a yield timeframe (e.g., 24H) to populate fee-based metrics
What is the Position Simulator?
The Position Simulator helps you visualize how a planned liquidity position could perform as the current price moves through your intended range. It lets you explore projected PnL, token mix, impermanent loss, and estimated yield before you create a position.
Where can I find it?
Go to Pools → select a pool → open Position Simulator below the Liquidity Terminal chart.
Do I need to connect my wallet?
A position cannot be created without connecting your wallet, but you can enter values into the Create Position sidebar and view a simulation based on those values.
How do I simulate a position?
Open Create Position, set your desired range, and (optionally) enter a deposit. Then open Position Simulator — results update automatically.
Charts and Controls
What does the PnL chart show?
How the projected outcome changes with price.
X-axis: Simulated pool price
Y-axis: Net PnL (in your selected denomination)
White slider: Selected pool price
Grey dashed line: Current price (reference)
Green area: Positive PnL
Red area: Negative PnL
What is selected price vs current price?
Current price is live market price (reference).
Selected price a price you choose—the simulation will update in real-time based on this.
How do denomination toggles work?
They change how values are displayed.
Price denomination affects the x-axis (amended in Position Creation sidebar may flip the curve)
PnL denomination affects the y-axis (may flip values)
Metrics
What does “Net PnL” mean?
Projected profit or loss at the selected price, relative to your deposit, including token mix changes, projected fees and rewards, shown in your selected currency.
What is token mix?
Token mix shows how your liquidity position is split between the two pool tokens at the selected price (a ratio).
In concentrated liquidity pools, your position automatically shifts between tokens as price moves and the token mix is a ratio :
As price increases, your position holds more of one token
As price decreases, your position holds more of the other
When price moves outside your range, the position becomes 100% one-sided
This behavior is a core feature of concentrated liquidity AMMs and enables positions to earn fees within a defined price range.
What is Estimated Yield?
Projected fee return rate, based on historical data and projected yields, for the selected timeframe (e.g., 1h, 24h, 7d), shown as a percentage of deposit value. Note this is not annualized in the simulator.
What is Estimated Yield Earned?
Projected fees earned over your chosen Time In-Range.
Populates only when a Time In-Range is entered
Displayed in $ when you’ve entered deposit amounts
What is Time In-Range?
How long you expect the position to stay within its range (earning fees).
What is LP Opportunity Cost?
LP Opportunity Cost is the total cost an LP may incur compared to simply holding the deposited assets. It combines two sources of potential loss: impermanent loss and directional price exposure.
Impermanent loss occurs as price moves away from the deposit price while the position remains in range. It reflects the difference between the value of the position’s token mix and the value of the originally deposited tokens had they been held instead.
Directional price exposure occurs when a position moves out of range and becomes fully one-sided. At that point, the LP is exposed to continued price movement in a single asset as price diverges further from the original deposit price.
LP Opportunity Cost is always measured relative to holding the same assets in your wallet. For a position to be net positive, the fees and/or rewards earned must exceed this cost.
What is Impermanent Loss?
Impermanent loss (IL) is the opportunity cost of providing liquidity versus holding your tokens at the selected price. It depends only on price movement, not time.
IL is:
Always zero when the selected price matches the entry price
Always shown as a loss when price moves away from the entry price
What does LP vs HODL mean?
The difference between LPing or simply holding
LP vs HODL = Estimated Yield (Fees + Rewards) Earned − LP Opportunity Cost
Positive: LPing outperforms holding
Negative: holding outperforms LPing
Displayed as a percentage without a deposit amount, displays as a dollar value with a deposit amount
Populates when Time In-Range > 0
Common gotchas
LP Opportunity Cost shows even when Time In-Range is 0. This is expected. LP Opportunity Cost is price-based, not time-based.
I see “–” or “<0.01” in the output. This usually means Time In-Range = 0 and/or you haven’t entered a deposit amount.
My position’s token mix is 100% one token. You’re out of range at the selected price. Out of range positions stop earning fees and will have a one-sided token mix. → Learn more
The chart flipped after I toggled tokens. Expected. Price denomination (x-axis) and PnL denomination (y-axis) can invert the curve.
LP vs HODL is negative even though Estimated Yield is positive. Yield can be outweighed by Impermanent Loss at that selected price.
This doesn’t match what I’ll actually earn. It’s a projection based on historical data. Real outcomes depend on future fees, price volatility, and trading volume. It's important to remember that past performance is not a guarantee of future returns.
When will simulated results differ from real outcomes?
The simulator uses estimates and assumptions:
No slippage or priority fees are accounted for
Earned fees are projected, not guaranteed
Market conditions may change
Actual results may differ from simulations, simulations are based on historic data, past performance is not a guarantee of future returns.
Where does the data used in the simulator come from?
The Position Simulator uses on-chain pool data and historical trading activity from Orca to estimate outcomes.
Specifically, it relies on:
Current pool state (price, liquidity, fee tier, and position parameters)
Historical trading volume and fees over the selected timeframe to project estimated yield
Current reward distribution rates, where applicable
AMM mechanics to model token mix changes and impermanent loss as price moves
All calculations are based on current and historical data at the time of simulation. The simulator does not predict future volume or price movements, and results may differ from real outcomes.
Is the Position Simulator financial advice?
No. The Position Simulator is an informational tool designed to help you manage risk and does not constitute financial advice. Past performance is not a guarantee of future returns.
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