RISKS & SECURITY
Sandwich Attack
Definition
A sandwich attack occurs when a malicious actor places transactions before and after a victim's trade to profit from the price movement caused by the victim's transaction.
Example
Example
An attacker sees your large buy order, front-runs with their own buy to push price up, then back-runs with a sell order after yours executes.
Risks to Consider
Risks
- Increased trading costs
- Unfair extraction
- Poor execution