diff --git a/app/testutil/amm.go b/app/testutil/amm.go
index 1c197e01..651273d5 100644
--- a/app/testutil/amm.go
+++ b/app/testutil/amm.go
@@ -29,6 +29,20 @@ func (s *TestSuite) AddLiquidity(ownerAddr sdk.AccAddress, poolId uint64, lowerP
 	return
 }
 
+func (s *TestSuite) AddLiquidityByLiquidity(ownerAddr sdk.AccAddress, poolId uint64, lowerPrice, upperPrice sdk.Dec, desiredLiquidity sdk.Int) (position ammtypes.Position, liquidity sdk.Int, amt sdk.Coins) {
+	s.T().Helper()
+	pool := s.App.AMMKeeper.MustGetPool(s.Ctx, poolId)
+	poolState := s.App.AMMKeeper.MustGetPoolState(s.Ctx, poolId)
+	amt0, amt1 := ammtypes.AmountsForLiquidity(
+		utils.DecApproxSqrt(poolState.CurrentPrice),
+		utils.DecApproxSqrt(lowerPrice),
+		utils.DecApproxSqrt(upperPrice),
+		desiredLiquidity)
+	return s.AddLiquidity(
+		ownerAddr, pool.Id, lowerPrice, upperPrice,
+		sdk.NewCoins(sdk.NewCoin(pool.Denom0, amt0), sdk.NewCoin(pool.Denom1, amt1)))
+}
+
 func (s *TestSuite) RemoveLiquidity(ownerAddr sdk.AccAddress, positionId uint64, liquidity sdk.Int) (position ammtypes.Position, amt sdk.Coins) {
 	s.T().Helper()
 	var err error
diff --git a/x/amm/keeper/grpc_query_test.go b/x/amm/keeper/grpc_query_test.go
index c7850bde..38419848 100644
--- a/x/amm/keeper/grpc_query_test.go
+++ b/x/amm/keeper/grpc_query_test.go
@@ -906,14 +906,9 @@ func (s *KeeperTestSuite) TestQueryOrderBookEdgecase() {
 	market, pool := s.CreateMarketAndPool("ucre", "uusd", utils.ParseDec("0.000000000002410188"))
 
 	lpAddr := s.FundedAccount(1, enoughCoins)
-	amt0, amt1 := types.AmountsForLiquidity(
-		utils.DecApproxSqrt(utils.ParseDec("0.000000000002410188")),
-		utils.DecApproxSqrt(types.MinPrice),
-		utils.DecApproxSqrt(types.MaxPrice),
-		sdk.NewInt(160843141868))
-	s.AddLiquidity(
+	s.AddLiquidityByLiquidity(
 		lpAddr, pool.Id, types.MinPrice, types.MaxPrice,
-		sdk.NewCoins(sdk.NewCoin(pool.Denom0, amt0), sdk.NewCoin(pool.Denom1, amt1)))
+		sdk.NewInt(160843141868))
 
 	querier := exchangekeeper.Querier{Keeper: s.App.ExchangeKeeper}
 	resp, err := querier.OrderBook(sdk.WrapSDKContext(s.Ctx), &exchangetypes.QueryOrderBookRequest{
@@ -948,27 +943,14 @@ func (s *KeeperTestSuite) TestQueryOrderBookEdgecase2() {
 	market, pool := s.CreateMarketAndPool("ucre", "uusd", utils.ParseDec("1"))
 
 	lpAddr := s.FundedAccount(1, enoughCoins)
-	amt0, amt1 := types.AmountsForLiquidity(
-		utils.DecApproxSqrt(utils.ParseDec("1")),
-		utils.DecApproxSqrt(types.MinPrice),
-		utils.DecApproxSqrt(types.MaxPrice),
-		sdk.NewInt(10))
-	s.AddLiquidity(
-		lpAddr, pool.Id, types.MinPrice, types.MaxPrice,
-		sdk.NewCoins(sdk.NewCoin(pool.Denom0, amt0), sdk.NewCoin(pool.Denom1, amt1)))
+	s.AddLiquidityByLiquidity(
+		lpAddr, pool.Id, types.MinPrice, types.MaxPrice, sdk.NewInt(10))
 
 	querier := exchangekeeper.Querier{Keeper: s.App.ExchangeKeeper}
 	resp, err := querier.OrderBook(sdk.WrapSDKContext(s.Ctx), &exchangetypes.QueryOrderBookRequest{
 		MarketId: market.Id,
 	})
 	s.Require().NoError(err)
-	expected := []exchangetypes.OrderBookPriceLevel{
-		{P: utils.ParseDec("1000000000000000000000000000000000000.000000000000000000"), Q: utils.ParseDec("9.014670721835706842")},
-	}
-	s.Require().GreaterOrEqual(len(resp.OrderBooks[0].Sells), len(expected))
-	for i, level := range expected {
-		s.AssertEqual(level.P, resp.OrderBooks[0].Sells[i].P)
-		s.AssertEqual(level.Q, resp.OrderBooks[0].Sells[i].Q)
-	}
-	s.Require().Empty(resp.OrderBooks[0].Buys)
+	// Due to too low liquidity, order book is not displayed.
+	s.Require().Empty(resp.OrderBooks)
 }
diff --git a/x/amm/keeper/pool_test.go b/x/amm/keeper/pool_test.go
index 1498c338..16acf725 100644
--- a/x/amm/keeper/pool_test.go
+++ b/x/amm/keeper/pool_test.go
@@ -224,3 +224,24 @@ func (s *KeeperTestSuite) TestPoolOrdersEdgecase() {
 	}, nil)
 	s.Require().Len(obs.Levels(), 1)
 }
+
+func (s *KeeperTestSuite) TestPoolOrderMaxOrderPriceRatio() {
+	market := s.CreateMarket("ucre", "uusd")
+
+	mmAddr := s.FundedAccount(1, enoughCoins)
+	s.MakeLastPrice(market.Id, mmAddr, utils.ParseDec("5"))
+
+	// last price != pool price
+	pool := s.CreatePool(market.Id, utils.ParseDec("100"))
+
+	s.AddLiquidityByLiquidity(
+		mmAddr, pool.Id, utils.ParseDec("50"), utils.ParseDec("200"),
+		sdk.NewInt(1000000))
+
+	ordererAddr := s.FundedAccount(2, enoughCoins)
+	s.PlaceLimitOrder(
+		market.Id, ordererAddr, false, utils.ParseDec("5.05"), sdk.NewDec(100_000000), 0)
+
+	s.AssertEqual(utils.ParseDec("90"), s.keeper.MustGetPoolState(s.Ctx, pool.Id).CurrentPrice)
+	s.AssertEqual(utils.ParseDec("90"), *s.App.ExchangeKeeper.MustGetMarketState(s.Ctx, market.Id).LastPrice)
+}
diff --git a/x/amm/keeper/source.go b/x/amm/keeper/source.go
index 18c8a166..828528d1 100644
--- a/x/amm/keeper/source.go
+++ b/x/amm/keeper/source.go
@@ -33,12 +33,19 @@ func (k OrderSource) ConstructMemOrderBookSide(
 	if !found {
 		return nil // no pool found
 	}
+	maxPriceRatio := k.exchangeKeeper.GetMaxOrderPriceRatio(ctx)
+	poolState := k.MustGetPoolState(ctx, pool.Id)
+	minPrice, maxPrice := exchangetypes.OrderPriceLimit(poolState.CurrentPrice, maxPriceRatio)
 
 	reserveAddr := pool.MustGetReserveAddress()
 	accQty := utils.ZeroDec
 	accQuote := utils.ZeroDec
 	numPriceLevels := 0
 	k.IteratePoolOrders(ctx, pool, opts.IsBuy, func(price, qty, openQty sdk.Dec) (stop bool) {
+		if (opts.IsBuy && price.LT(minPrice)) ||
+			(!opts.IsBuy && price.GT(maxPrice)) {
+			return true
+		}
 		if opts.ReachedLimit(price, accQty, accQuote, numPriceLevels) {
 			return true
 		}
diff --git a/x/amm/types/expected_keepers.go b/x/amm/types/expected_keepers.go
index 63e57a42..70604b94 100644
--- a/x/amm/types/expected_keepers.go
+++ b/x/amm/types/expected_keepers.go
@@ -29,6 +29,7 @@ type BankKeeper interface {
 }
 
 type ExchangeKeeper interface {
+	GetMaxOrderPriceRatio(ctx sdk.Context) sdk.Dec
 	GetMarket(ctx sdk.Context, marketId uint64) (market exchangetypes.Market, found bool)
 	LookupMarket(ctx sdk.Context, marketId uint64) (found bool)
 	IterateAllMarkets(ctx sdk.Context, cb func(market exchangetypes.Market) (stop bool))
diff --git a/x/exchange/types/market.go b/x/exchange/types/market.go
index c8a1c607..651c1c61 100644
--- a/x/exchange/types/market.go
+++ b/x/exchange/types/market.go
@@ -81,8 +81,8 @@ func (marketState MarketState) Validate() error {
 	return nil
 }
 
-func OrderPriceLimit(lastPrice, maxOrderPriceRatio sdk.Dec) (minPrice, maxPrice sdk.Dec) {
-	minPrice = lastPrice.Mul(utils.OneDec.Sub(maxOrderPriceRatio))
-	maxPrice = lastPrice.Mul(utils.OneDec.Add(maxOrderPriceRatio))
+func OrderPriceLimit(basePrice, maxOrderPriceRatio sdk.Dec) (minPrice, maxPrice sdk.Dec) {
+	minPrice = basePrice.Mul(utils.OneDec.Sub(maxOrderPriceRatio))
+	maxPrice = basePrice.Mul(utils.OneDec.Add(maxOrderPriceRatio))
 	return
 }