What Is the Trade-off of Setting a Very Low Slippage Tolerance?
The trade-off of setting a very low slippage tolerance is an increased risk of the transaction failing, or "reverting." While a low tolerance protects the user from front-running and poor execution prices, any minor market fluctuation or network delay could cause the executed price to exceed the set tolerance, leading to a failed transaction. The user still pays the gas fee for the failed transaction, resulting in a financial loss without the trade being completed.