What Is the Maximum Acceptable Slippage Setting for a Typical DeFi Trade? ⎊ Path

What Is the Maximum Acceptable Slippage Setting for a Typical DeFi Trade?

The maximum acceptable slippage is a user-defined setting, typically between 0.5% and 1% for standard trades. This setting dictates the maximum percentage the final execution price can deviate from the quoted price.

Setting it too low risks the transaction failing (reverting) due to price movement; setting it too high exposes the trader to potential front-running or poor execution.

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

What Role Does Slippage Tolerance Play in Protecting a Trader from Being Front-Run?

How Can a Protocol Use Slippage Tolerance Settings to Prevent Front-Running Attacks?

What Is the Difference between Front-Running on a CEX versus a DEX?

What Are the Key Differences between Front-Running in Traditional Options Markets and Crypto Spot Markets?

How Does the Risk of “Front-Running” Differ between LOBs and AMMs?

What Is the Difference between Front-Running in CEXs and DEXs?

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

Glossar

Maximum Acceptable Slippage

Parameter ⎊ Maximum acceptable slippage is a quantitative parameter set by a trader or algorithm that defines the largest permissible price deviation during order execution.