Slippage

What Is Slippage?

Slippage is the difference between the price you expect to receive and the actual price at which your swap is executed.

Because on-chain transactions require network confirmation, market prices may change between the time you submit the transaction and the time it is executed. As a result, the final execution price may differ from the quoted price.

For example:

• When you submit the swap: 1 ETH = 3,000 USDT

• When the transaction is confirmed: 1 ETH = 3,015 USDT

The 0.5% price difference is called slippage.

Why Does Slippage Happen?

Slippage is usually caused by one or more of the following factors:

1. Market Price Volatility

Token prices can change rapidly. If the market moves before your transaction is confirmed, your final execution price may differ from the quoted price.

This is more common during periods of high market volatility.

2. Low Liquidity

When a liquidity pool has limited liquidity, large swaps can significantly impact the pool price, resulting in higher slippage.

In general:

• Popular tokens with deep liquidity usually have lower slippage.

• New or low-liquidity tokens are more likely to experience higher slippage.

3. Large Trade Size

The larger your swap amount, the greater its impact on the liquidity pool, making higher slippage more likely.

What Is Slippage Tolerance?

Slippage Tolerance is the maximum price difference you're willing to accept for a transaction.

For example, if your slippage tolerance is set to 1%:

• The swap will execute if the price changes by 1% or less.

• If the price changes by more than 1%, the transaction will automatically fail to prevent execution at an unacceptable price.

How to Set Slippage Tolerance

On the Swap page, tap Settings to adjust your slippage tolerance.

General recommendations:

• 0.1%–0.5%: Suitable for highly liquid, popular tokens.

• 0.5%–1%: Suitable for most standard swaps.

• Above 1%: Usually required for highly volatile or low-liquidity tokens.

Only increase your slippage tolerance when necessary.

What Happens If My Slippage Tolerance Is Too Low?

If your slippage tolerance is set too low:

• Even small price movements may cause the transaction to fail.

• Network fees (gas fees) paid for the transaction are generally non-refundable, depending on the blockchain.

If your swaps repeatedly fail due to slippage, consider increasing the tolerance slightly and trying again.

What Happens If My Slippage Tolerance Is Too High?

A higher slippage tolerance makes your transaction more likely to succeed, but it also means:

• You may receive a less favorable execution price.

• During periods of high volatility, you could receive significantly fewer tokens than expected.

For this reason, it's not recommended to keep your slippage tolerance set unnecessarily high.

How Can I Reduce Slippage?

You can help minimize slippage by:

• Trading in liquidity pools with higher liquidity.

• Splitting large swaps into multiple smaller transactions.

• Avoiding swaps during periods of high market volatility.

• Using the lowest reasonable slippage tolerance for your trade.

• Trading popular tokens or pairs with sufficient liquidity.

FAQs

Why does my swap show "Slippage Exceeded"?

This means the market price changed beyond your configured slippage tolerance before the transaction was executed, so the swap was automatically canceled.

You can wait for market conditions to stabilize or increase your slippage tolerance slightly before trying again.

Is slippage the same as a gas fee?

No.

Slippage is the difference between the expected execution price and the actual execution price. A gas fee is the network fee paid to process your transaction on the blockchain. They are two different costs.

Is a higher slippage tolerance always better?

No.

A higher slippage tolerance increases the likelihood that your transaction will succeed, but it also increases the risk of receiving a worse execution price. It's best to choose a setting based on the token's liquidity and current market conditions rather than simply using the highest value.