Slippage, price impact and fees are three different costs
A high tolerance does not improve a quote. It permits more adverse movement.
Key takeaways
- Price impact follows from order size
- Slippage tolerance sets an acceptance boundary
- Account for fees separately
- Always refresh an expired quote
Separate three concepts[1][2]
Price impact describes the change caused by consuming available liquidity. Slippage tolerance defines how far execution may move from the quote. Fees are explicit network, platform or provider charges.
- Input amount
- Estimated output
- Price impact
- Minimum received
- Network fee
- Platform fee
Tolerance does not improve the market[1]
Raising tolerance can reduce failed transactions, but it also widens the accepted outcome. It adds no liquidity and does not improve the original quote.
Procedure before signing[1]
Compare interface values with the wallet request. Check quote expiry and route. If the market moved or the quote expired, request another instead of increasing tolerance without analysis.
A quote can show 1,000 tokens with minimum received of 970. The difference is an execution boundary, not a guaranteed loss. Separate fees still apply.
Sources
Primary material used to verify the information. A number beside a section points to the related source. A link is not an endorsement of the asset discussed.