diff --git a/x/liquidity/keeper/swap.go b/x/liquidity/keeper/swap.go
index 7c87c0718..937309edf 100644
--- a/x/liquidity/keeper/swap.go
+++ b/x/liquidity/keeper/swap.go
@@ -16,6 +16,13 @@ import (
 // ValidateMsgLimitOrder validates types.MsgLimitOrder with state and returns
 // calculated offer coin and price that is fit into ticks.
 func (k Keeper) ValidateMsgLimitOrder(ctx sdk.Context, msg *types.MsgLimitOrder) (offerCoin sdk.Coin, price sdk.Dec, err error) {
+	spendable := k.bankKeeper.SpendableCoins(ctx, msg.GetOrderer())
+	if spendableAmt := spendable.AmountOf(msg.OfferCoin.Denom); spendableAmt.LT(msg.OfferCoin.Amount) {
+		return sdk.Coin{}, sdk.Dec{}, sdkerrors.Wrapf(
+			sdkerrors.ErrInsufficientFunds, "%s is smaller than %s",
+			sdk.NewCoin(msg.OfferCoin.Denom, spendableAmt), msg.OfferCoin)
+	}
+
 	params := k.GetParams(ctx)
 
 	if msg.OrderLifespan > params.MaxOrderLifespan {
@@ -122,6 +129,13 @@ func (k Keeper) LimitOrder(ctx sdk.Context, msg *types.MsgLimitOrder) (types.Ord
 // ValidateMsgMarketOrder validates types.MsgMarketOrder with state and returns
 // calculated offer coin and price.
 func (k Keeper) ValidateMsgMarketOrder(ctx sdk.Context, msg *types.MsgMarketOrder) (offerCoin sdk.Coin, price sdk.Dec, err error) {
+	spendable := k.bankKeeper.SpendableCoins(ctx, msg.GetOrderer())
+	if spendableAmt := spendable.AmountOf(msg.OfferCoin.Denom); spendableAmt.LT(msg.OfferCoin.Amount) {
+		return sdk.Coin{}, sdk.Dec{}, sdkerrors.Wrapf(
+			sdkerrors.ErrInsufficientFunds, "%s is smaller than %s",
+			sdk.NewCoin(msg.OfferCoin.Denom, spendableAmt), msg.OfferCoin)
+	}
+
 	params := k.GetParams(ctx)
 
 	if msg.OrderLifespan > params.MaxOrderLifespan {
diff --git a/x/liquidity/keeper/swap_test.go b/x/liquidity/keeper/swap_test.go
index 6fdb665ba..4e0a7f8c6 100644
--- a/x/liquidity/keeper/swap_test.go
+++ b/x/liquidity/keeper/swap_test.go
@@ -4,6 +4,7 @@ import (
 	"time"
 
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
 
 	utils "github.com/cosmosquad-labs/squad/types"
 	"github.com/cosmosquad-labs/squad/x/liquidity"
@@ -113,6 +114,23 @@ func (s *KeeperTestSuite) TestLimitOrder() {
 	}
 }
 
+func (s *KeeperTestSuite) TestLimitOrderInsufficientOfferCoin() {
+	pair := s.createPair(s.addr(0), "denom1", "denom2", true)
+
+	orderer := s.addr(1)
+	s.fundAddr(orderer, utils.ParseCoins("1000000denom2"))
+	_, err := s.keeper.LimitOrder(s.ctx, types.NewMsgLimitOrder(
+		orderer, pair.Id, types.OrderDirectionBuy, utils.ParseCoin("1000001denom2"), "denom1",
+		utils.ParseDec("1.0"), sdk.NewInt(1000000), 0))
+	s.Require().ErrorIs(err, sdkerrors.ErrInsufficientFunds)
+
+	s.fundAddr(orderer, utils.ParseCoins("1000000denom1"))
+	_, err = s.keeper.LimitOrder(s.ctx, types.NewMsgLimitOrder(
+		orderer, pair.Id, types.OrderDirectionSell, utils.ParseCoin("1000001denom1"), "denom2",
+		utils.ParseDec("1.0"), sdk.NewInt(1000000), 0))
+	s.Require().ErrorIs(err, sdkerrors.ErrInsufficientFunds)
+}
+
 func (s *KeeperTestSuite) TestLimitOrderRefund() {
 	pair := s.createPair(s.addr(0), "denom1", "denom2", true)
 	orderer := s.addr(1)
@@ -196,6 +214,23 @@ func (s *KeeperTestSuite) TestMarketOrder() {
 	s.Require().True(coinsEq(utils.ParseCoins("10800denom2"), s.getBalances(s.addr(4))))
 }
 
+func (s *KeeperTestSuite) TestMarketOrderInsufficientOfferCoin() {
+	pair := s.createPair(s.addr(0), "denom1", "denom2", true)
+
+	orderer := s.addr(1)
+	s.fundAddr(orderer, utils.ParseCoins("1000000denom2"))
+	_, err := s.keeper.MarketOrder(s.ctx, types.NewMsgMarketOrder(
+		orderer, pair.Id, types.OrderDirectionBuy, utils.ParseCoin("1000001denom2"), "denom1",
+		sdk.NewInt(1000000), 0))
+	s.Require().ErrorIs(err, sdkerrors.ErrInsufficientFunds)
+
+	s.fundAddr(orderer, utils.ParseCoins("1000000denom1"))
+	_, err = s.keeper.MarketOrder(s.ctx, types.NewMsgMarketOrder(
+		orderer, pair.Id, types.OrderDirectionSell, utils.ParseCoin("1000001denom1"), "denom2",
+		sdk.NewInt(1000000), 0))
+	s.Require().ErrorIs(err, sdkerrors.ErrInsufficientFunds)
+}
+
 func (s *KeeperTestSuite) TestMarketOrderRefund() {
 	pair := s.createPair(s.addr(0), "denom1", "denom2", true)
 	p := utils.ParseDec("1.0")