How Does Setting a Low Slippage Tolerance Affect the Probability of a Transaction Failing?

Setting a low slippage tolerance significantly increases the probability of a transaction failing. In a volatile market, the price of an asset can move rapidly between the time a user submits their order and when a validator executes it.

If the price moves even slightly outside the narrow, acceptable range defined by the low tolerance, the smart contract will automatically revert the transaction to protect the user from an unfavorable execution price.