Slippage tolerance is a boundary
A tolerance does not predict how much a trade will move. It defines how far execution may move from the quote before the transaction should fail.
A very low tolerance can cause failures in volatile or thin markets. A very high tolerance can allow an unexpectedly poor result.
Price impact is different
Price impact describes how the trade itself changes the pool price or consumes available liquidity. Slippage can also come from other transactions and market movement between quote and execution.
Large trades and assets with limited liquidity generally deserve closer review.
How to review a quote
Look at the expected output, minimum received, price impact, route and network costs together. Request a fresh quote if the displayed result is stale.
- Avoid setting tolerance higher solely to force a failing route through.
- Break down unusually large trades before execution.
- Verify the receive token and contract.
- Requote after a material delay.