Does Slippage Tolerance Prevent Front-Running or Just Mitigate Its Financial Impact? ⎊ Path

Does Slippage Tolerance Prevent Front-Running or Just Mitigate Its Financial Impact?

Slippage tolerance does not prevent a front-runner from attempting an attack. Instead, it serves as a protective mechanism that mitigates the financial impact on the user.

By setting a low tolerance, the user ensures that if a front-runner successfully manipulates the price, the user's transaction will revert, preventing the front-runner from profiting from the second leg of the attack and limiting the user's loss to only the gas fee.

What Is Slippage Tolerance and How Does Adjusting It Mitigate Front-Running Risk?

Can a Front-Runner Profit from Knowing a Large American Option Is about to Be Exercised?

How Does Slippage Tolerance Setting Affect a User’s Vulnerability to a Sandwich Attack?

How Does Setting a Low Slippage Tolerance Protect against a Sandwich Attack?

What Is a “Sandwich Attack” in the Context of DeFi and How Does It Utilize Front-Running?

Can a Front-Runner Deliberately Cause a Transaction to Revert Using Slippage?

What Is a “Front-Running” Attack in the Context of a Low-Throughput Chain?

What Is ‘Slippage Tolerance’ and How Does a Trader Use It to Mitigate Front-Running Risk?

Glossar

Slippage Tolerance

Mechanism ⎊ Slippage tolerance, within cryptocurrency, options, and derivatives trading, defines the maximum acceptable difference between the expected price of a trade and the price at which the trade is actually executed.