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What Is ‘Maximum Tolerable Slippage’ and Why Is It Set by Traders?

It is the maximum acceptable price difference a trader allows. It's set to prevent excessive loss from volatility or front-running, automatically reverting the trade if the limit is breached.
Greeks.Live08.11.25

What Is ‘Maximum Tolerable Slippage’ and Why Is It Set by Traders?

Maximum Tolerable Slippage is a parameter set by a trader, especially on a DEX, which specifies the largest percentage difference between the expected execution price and the worst acceptable execution price. Traders set this to protect themselves from excessive losses due to volatility or front-running.

If the actual execution price exceeds this limit, the transaction is automatically reverted, preventing a bad fill.

How Do ‘Private Transaction Relays’ Attempt to Mitigate Front-Running from the Mempool?
What Are the Differences between Front-Running in Traditional Finance and on DEXs?
What Is a ‘Gas Limit’ and Why Is It Necessary for Smart Contracts?
How Does Front-Running Relate to MEV and Fair Transaction Ordering?

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