Slippage

Slippage occurs when there is insufficient liquidity to execute a trade at the quoted price, causing the actual execution price to differ — usually unfavorably. On DEXs, larger trades relative to pool size cause more price impact and thus more slippage. Most DEX interfaces allow users to set a slippage tolerance; if price moves beyond it, the transaction reverts. High slippage tolerance opens users to sandwich attacks by MEV bots.