Slippage

Slippage is the difference between the expected price of a trade and the price at which it is actually executed.

Slippage arises when a market lacks the depth to fill an order at the quoted price, so the order walks the book or the pool curve to worse levels. On AMMs, larger trades against shallow pools slip more because each unit moves the reserve ratio. Traders set slippage tolerances to protect against filling too far from the quote. Estimating slippage ahead of time means reading pool reserves or order-book depth, both available from our on-chain data.