Define the Concept of Slippage Tolerance in a Decentralized Exchange Trade

Slippage tolerance is the maximum percentage of price movement a trader is willing to accept between the time the trade is submitted and the time it is executed on a decentralized exchange. If the executed price falls outside this tolerance (e.g. due to a large trade or front-running), the transaction will automatically revert.

Arbitrageurs set low tolerance to protect profit, but this increases the risk of transaction failure.