What Is the Relationship between Slippage Tolerance and Failed Transactions?

Slippage tolerance is a user-set parameter that defines the maximum acceptable percentage difference between the expected and executed price. If the market price moves beyond this tolerance during the transaction's execution (e.g. due to volatility or front-running), the transaction will revert or fail.

A low tolerance reduces risk but increases the chance of failure, while a high tolerance increases the risk of a bad execution price.