diff --git a/pallets/swap/src/pallet/impls.rs b/pallets/swap/src/pallet/impls.rs
index 5ddc6efaaf..69bf3eacbb 100644
--- a/pallets/swap/src/pallet/impls.rs
+++ b/pallets/swap/src/pallet/impls.rs
@@ -885,7 +885,7 @@ impl<T: Config> Pallet<T> {
         liquidity: u64,
     ) -> Result<(Position<T>, u64, u64), Error<T>> {
         ensure!(
-            Self::count_positions(netuid, coldkey_account_id) <= T::MaxPositions::get() as usize,
+            Self::count_positions(netuid, coldkey_account_id) < T::MaxPositions::get() as usize,
             Error::<T>::MaxPositionsExceeded
         );
 
diff --git a/pallets/swap/src/pallet/tests.rs b/pallets/swap/src/pallet/tests.rs
index 4c3a890c9b..845acd957a 100644
--- a/pallets/swap/src/pallet/tests.rs
+++ b/pallets/swap/src/pallet/tests.rs
@@ -342,6 +342,40 @@ fn test_add_liquidity_basic() {
     });
 }
 
+#[test]
+fn test_add_liquidity_max_limit_enforced() {
+    new_test_ext().execute_with(|| {
+        let netuid = NetUid::from(1);
+        let liquidity = 2_000_000_000_u64;
+        assert_ok!(Pallet::<Test>::maybe_initialize_v3(netuid));
+
+        let limit = MaxPositions::get() as usize;
+
+        for _ in 0..limit {
+            Pallet::<Test>::do_add_liquidity(
+                netuid,
+                &OK_COLDKEY_ACCOUNT_ID,
+                &OK_HOTKEY_ACCOUNT_ID,
+                TickIndex::MIN,
+                TickIndex::MAX,
+                liquidity,
+            )
+            .unwrap();
+        }
+
+        let test_result = Pallet::<Test>::do_add_liquidity(
+            netuid,
+            &OK_COLDKEY_ACCOUNT_ID,
+            &OK_HOTKEY_ACCOUNT_ID,
+            TickIndex::MIN,
+            TickIndex::MAX,
+            liquidity,
+        );
+
+        assert_err!(test_result, Error::<Test>::MaxPositionsExceeded);
+    });
+}
+
 #[test]
 fn test_add_liquidity_out_of_bounds() {
     new_test_ext().execute_with(|| {