diff --git a/sdk/src/math/amm.ts b/sdk/src/math/amm.ts
index 88a9ec9f5..55680edc4 100644
--- a/sdk/src/math/amm.ts
+++ b/sdk/src/math/amm.ts
@@ -503,16 +503,10 @@ export function calculateReferencePriceOffset(
 		.mul(PRICE_PRECISION)
 		.div(reservePrice);
 
-	const inventoryPct = clampBN(
-		liquidityFraction.mul(new BN(maxOffsetPct)).div(PERCENTAGE_PRECISION),
-		new BN(maxOffsetPct).mul(new BN(-1)),
-		new BN(maxOffsetPct)
-	);
-
 	// Only apply when inventory is consistent with recent and 24h market premium
-	let offsetPct = markPremiumAvgPct.add(inventoryPct);
+	let offsetPct = markPremiumAvgPct.mul(liquidityFraction.abs()).divn(2);
 
-	if (!sigNum(inventoryPct).eq(sigNum(markPremiumAvgPct))) {
+	if (!sigNum(liquidityFraction).eq(sigNum(markPremiumAvgPct))) {
 		offsetPct = ZERO;
 	}
 
@@ -1032,11 +1026,15 @@ export function calculateSpreadReserves(
 	let maxOffset = 0;
 	let referencePriceOffset = 0;
 	if (amm.curveUpdateIntensity > 100) {
-		maxOffset = Math.max(
-			amm.maxSpread / 2,
-			(PERCENTAGE_PRECISION.toNumber() / 10000) *
-				(amm.curveUpdateIntensity - 100)
-		);
+		if (amm.curveUpdateIntensity == 200) {
+			maxOffset = Math.max(amm.maxSpread / 2, 10_000);
+		} else {
+			maxOffset = Math.min(
+				amm.maxSpread / 2,
+				(PERCENTAGE_PRECISION.toNumber() / 10000) *
+					(amm.curveUpdateIntensity - 100)
+			);
+		}
 
 		const liquidityFraction =
 			calculateInventoryLiquidityRatioForReferencePriceOffset(