This study investigates the effect of Lift-off Distance (LoD) on a computer mouse, which refers to the height at which a mouse sensor stops tracking when lifted off the surface. Although a low LoD is generally preferred to avoid unintentional cursor movement in mouse lifting (=clutching), especially in first-person shooter games, it may reduce tracking stability. We conducted a psychophysical experiment to measure the perceptible differences between LoD levels and quantitatively measured the unintentional cursor movement error and tracking stability at four levels of LoD while users performed mouse lifting. The results showed a trade-off between movement error and tracking stability at varying levels of LoD. Our findings offer valuable information on optimal LoD settings, which could serve as a guide for choosing a proper mouse device for enthusiastic gamers.