Trading & AMMs
Slippage
Difference between a quoted trade outcome and execution
Definition
Slippage is the difference between a trade’s quoted outcome and its actual execution. It can result from market movement, transaction ordering or reserve changes before inclusion; the trade’s own price impact is distinct and is normally already reflected in the quote.
Example
A quote offers 1,000 USDC for a sale. A 1% slippage tolerance sets a 990 USDC minimum; 995 USDC executes with 0.5% adverse slippage, while 985 USDC should revert under that limit.
How it works
The transaction encodes a minimum output or maximum input. The contract checks that bound at execution, not against your mental model of the price.
Risks to Consider
- A loose tolerance gives sandwich bots extraction room
- A stale quote can execute poorly after a price move
- A tight limit can cause reverts that still cost gas
Common Questions
Is slippage the same as price impact?
No. Price impact is the price movement caused by your own trade; slippage is the deviation from the quote. A large price impact can be quoted accurately with zero additional slippage.
