What Is “Slippage Tolerance” and How Does a Low Setting Make a User Vulnerable to Sandwich Attacks?

Slippage tolerance is the maximum percentage difference a user is willing to accept between the quoted price and the executed price of a trade. A low tolerance setting means the user's transaction will fail if the price moves by even a small amount.

In a sandwich attack, the front-runner's first transaction (the "buy") causes the price to move. If the victim's tolerance is too low, the transaction may fail, but if it is set too high, the victim executes at a worse price, allowing the attacker to profit.