diff --git a/cmd/loop/liquidity.go b/cmd/loop/liquidity.go
index 57b48ec..dc6b9bb 100644
--- a/cmd/loop/liquidity.go
+++ b/cmd/loop/liquidity.go
@@ -2,12 +2,15 @@ package main
 
 import (
 	"context"
+	"errors"
 	"fmt"
 	"strconv"
 
 	"github.com/lightninglabs/loop/liquidity"
 	"github.com/lightninglabs/loop/looprpc"
 	"github.com/urfave/cli"
+	"google.golang.org/grpc/codes"
+	"google.golang.org/grpc/status"
 )
 
 var getLiquidityParamsCommand = cli.Command{
@@ -411,11 +414,22 @@ func suggestSwap(ctx *cli.Context) error {
 	resp, err := client.SuggestSwaps(
 		context.Background(), &looprpc.SuggestSwapsRequest{},
 	)
-	if err != nil {
+	if err == nil {
+		printJSON(resp)
+		return nil
+	}
+
+	// If we got an error because no rules are set, we want to display a
+	// friendly message.
+	rpcErr, ok := status.FromError(err)
+	if !ok {
 		return err
 	}
 
-	printJSON(resp)
+	if rpcErr.Code() != codes.FailedPrecondition {
+		return err
+	}
 
-	return nil
+	return errors.New("no rules set for autolooper, please set rules " +
+		"using the setrule command")
 }
diff --git a/liquidity/liquidity.go b/liquidity/liquidity.go
index f70a08a..ab276a8 100644
--- a/liquidity/liquidity.go
+++ b/liquidity/liquidity.go
@@ -178,6 +178,9 @@ var (
 	// less than the server minimum.
 	ErrMinLessThanServer = errors.New("minimum swap amount is less than " +
 		"server minimum")
+
+	// ErrNoRules is returned when no rules are set for swap suggestions.
+	ErrNoRules = errors.New("no rules set for autoloop")
 )
 
 // Config contains the external functionality required to run the
@@ -439,7 +442,14 @@ func (m *Manager) Run(ctx context.Context) error {
 	for {
 		select {
 		case <-m.cfg.AutoloopTicker.Ticks():
-			if err := m.autoloop(ctx); err != nil {
+			err := m.autoloop(ctx)
+			switch err {
+			case ErrNoRules:
+				log.Debugf("No rules configured for autoloop")
+
+			case nil:
+
+			default:
 				log.Errorf("autoloop failed: %v", err)
 			}
 
@@ -562,7 +572,7 @@ func (m *Manager) SuggestSwaps(ctx context.Context, autoloop bool) (
 	// If we have no rules set, exit early to avoid unnecessary calls to
 	// lnd and the server.
 	if len(m.params.ChannelRules) == 0 {
-		return nil, nil
+		return nil, ErrNoRules
 	}
 
 	// If our start date is in the future, we interpret this as meaning that
diff --git a/liquidity/liquidity_test.go b/liquidity/liquidity_test.go
index 0872394..7bbe1f7 100644
--- a/liquidity/liquidity_test.go
+++ b/liquidity/liquidity_test.go
@@ -496,10 +496,12 @@ func TestSuggestSwaps(t *testing.T) {
 		name  string
 		rules map[lnwire.ShortChannelID]*ThresholdRule
 		swaps []loop.OutRequest
+		err   error
 	}{
 		{
 			name:  "no rules",
 			rules: map[lnwire.ShortChannelID]*ThresholdRule{},
+			err:   ErrNoRules,
 		},
 		{
 			name: "loop out",
@@ -534,7 +536,7 @@ func TestSuggestSwaps(t *testing.T) {
 
 			testSuggestSwaps(
 				t, newSuggestSwapsSetup(cfg, lnd, params),
-				testCase.swaps, nil,
+				testCase.swaps, testCase.err,
 			)
 		})
 	}
diff --git a/loopd/swapclient_server.go b/loopd/swapclient_server.go
index abacd7a..ff310fc 100644
--- a/loopd/swapclient_server.go
+++ b/loopd/swapclient_server.go
@@ -21,6 +21,8 @@ import (
 	"github.com/lightningnetwork/lnd/lnwire"
 	"github.com/lightningnetwork/lnd/queue"
 	"github.com/lightningnetwork/lnd/routing/route"
+	"google.golang.org/grpc/codes"
+	"google.golang.org/grpc/status"
 )
 
 const (
@@ -703,7 +705,13 @@ func (s *swapClientServer) SuggestSwaps(ctx context.Context,
 	_ *looprpc.SuggestSwapsRequest) (*looprpc.SuggestSwapsResponse, error) {
 
 	swaps, err := s.liquidityMgr.SuggestSwaps(ctx, false)
-	if err != nil {
+	switch err {
+	case liquidity.ErrNoRules:
+		return nil, status.Error(codes.FailedPrecondition, err.Error())
+
+	case nil:
+
+	default:
 		return nil, err
 	}
 
diff --git a/release_notes.md b/release_notes.md
index c5ee3dd..acc5120 100644
--- a/release_notes.md
+++ b/release_notes.md
@@ -31,5 +31,8 @@ This file tracks release notes for the loop client.
   been renamed to `Autoloop`, `AutoloopBudgetSat` and `AutoloopBudgetStartSec`. 
 * The `autoout` flag for enabling automatic dispatch of loop out swaps has been
   renamed to `autoloop` so that it can cover loop out and loop in.
+* The `SuggestSwaps` rpc call will now fail with a `FailedPrecondition` grpc
+  error code if no rules are configured for the autolooper. Previously the rpc
+  would return an empty response.
 
 #### Bug Fixes