Slippage Tolerance
Slippage tolerance is the maximum percentage difference from the quoted price you accept for a swap; if the price moves further before execution, the transaction fails. A setting that is too high leaves you exposed to sandwich attacks.
Slippage tolerance is the setting on a decentralized exchange that says how much worse than the quoted price you will accept. Set it too tight and trades fail; set it too loose and you may get a poor fill or invite bots to take advantage. It is one of the most important numbers to check before confirming a swap.
- Category
- Cryptocurrency and Blockchain
- Reading time
- 4 min
- Also called
- Max slippage, Slippage setting, Allowed slippage
- Updated
Slippage tolerance in plain words
Slippage is the change in price that can happen while your transaction is waiting to be confirmed.1
Slippage tolerance sets how much extra price movement you'll accept, on top of your trade's own price impact.1
In practice it works like a worst-price limit attached to your swap.
How slippage tolerance works in a swap
Get a quote
The interface shows an expected output for your trade.
Set the tolerance
You choose a percentage, such as 0.5% or 1%.
Minimum is calculated
The app turns that percentage into a minimum amount you will receive.
Submit and wait
Your transaction sits pending while other trades may move the price.
Inside the range
If the final price lands within your tolerance — say 1% — the swap goes through.1
Outside the range
If it lands outside, the transaction fails and no swap happens.1
Worked examples
Example 1 — Minimum received
At least 1,990 USDCA hypothetical swap is quoted at 2,000 USDC for 1 ETH, with a 0.5% tolerance.
| Allowed shortfall | 2,000 × 0.5% = 10 USDC |
| Minimum received | 2,000 − 10 = 1,990 USDC |
Any fill at 1,990 USDC or better is within tolerance, so it goes through.1
Example 2 — Too tight, trade fails
Swap fails, $3 gas lostThe same hypothetical swap fills at 1,985 USDC while the minimum is 1,990 USDC.
| Gap | 1,990 − 1,985 = 5 USDC short |
| Gas spent on failed trade | $3 |
The price moved beyond the tolerance, so the swap failed.1
Example 3 — Too loose, sandwiched
Up to $200 lostA hypothetical trader sets 5% tolerance on a $4,000 swap, and a bot pushes the fill to the limit.
| Worst allowed fill | $4,000 × 95% = $3,800 |
| Value lost | $4,000 − $3,800 = $200 |
The sandwiched user got a worse price and more slippage.2
Tight vs loose tolerance
| Aspect | Tight (e.g. 0.1%) | Loose (e.g. 5%) |
|---|---|---|
| Price protection | Strong | Weak |
| Chance of failure | Higher in fast markets | Lower |
| Sandwich risk | Lower | Higher |
| Best for | Deep, stable pairs | Thin or very volatile tokens |
Where the setting matters
Thin pools
Low Liquidity means bigger price moves per trade.
Fast markets
High Volatility can push fills past a tight limit.
Large swaps
Big orders cause more Slippage on their own.
Fee control
Failed swaps still cost Trading Fees and Commissions in gas.
Advantages and disadvantages
Advantages
- Caps the worst price you accept.
- Turns a market swap into something like a Limit Order.
- Easy to adjust per trade.
- Protects against sudden price moves.
Disadvantages
- Too tight causes failed swaps and wasted gas.
- Too loose invites sandwich attacks.
- The right value changes with market conditions.
- Does not reduce price impact itself.
Going deeper
Read as far as you need. Each level builds on the one before it.
Tolerance vs price impact
Beginner
Price impact is what your own trade does; the tolerance covers what others do while you wait.1
Sandwich attacks
Intermediate
Choosing a value
Advanced
Wider tolerances make sandwich attacks more profitable — and your fills worse.2 Many traders start low on deep pairs and only widen for thin tokens, splitting large swaps where possible.
Common mistakes
Leaving a high setting on
A 5% setting from one trade can carry over to the next.
Confusing it with fees
Tolerance is a price limit, not a fee.
Retrying with ever-wider limits
Raising the limit after each failure can invite a bad fill.
Ignoring pool depth
Thin pools need smaller trades, not just looser settings.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- Slippage tolerance is your worst acceptable price.
- It turns into a minimum amount received.
- Too tight means failed swaps.
- Too loose invites sandwich attacks.
- Match the setting to pool depth and volatility.
Frequently asked questions
What slippage tolerance should I use?
Why did my swap fail?
Do I lose money when a swap fails?
Further learning
- Slippage
The gap between quoted and filled price.
- Liquidity
Why deep pools move less.
- Limit Order
Setting a worst price on any trade.
- Volatility
Why fast markets need care.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- Uniswap Docs. Swaps (opens in a new tab) Checked .
- ethereum.org. Maximal extractable value (MEV) (opens in a new tab) Checked .
- European Securities and Markets Authority (ESMA). Maximal Extractable Value: Implications for crypto markets (2025) (opens in a new tab) Checked .
Read more elsewhere
- Trading Metrics (our sister site): Slippage (opens in a new tab)
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. Trading Metrics is our sister site, under the same ownership; we are not affiliated with any other publisher linked above. Last reviewed . Report an error or request a source credit.