Slippage Settings
Setting your slippage and why it is important.
Last updated
Setting your slippage and why it is important.
Last updated
Slippage in crypto trading occurs when the price you intend to buy or sell a token at differs from the actual price when the transaction is completed. This usually happens in volatile markets or with tokens that have lower liquidity. Setting a slippage tolerance allows you to control how much price change you are willing to accept during a trade.
If your slippage tolerance is set too low, your transaction may fail if the price moves beyond your limit. Conversely, setting it too high can expose you to unexpected and potentially large changes in price, potentially costing you more than expected. Properly adjusting slippage tolerance helps ensure successful trades while managing price risks. To simplify it a little, if the token you are buying carries a 5% tax, then it is necessary to set your slippage to 5% or very slightly above. If your token carries a 0% tax, it is important to ensure your slippage is set to close to 0% i.e. .5% - 1% for example. This will avoid having your transaction beaten by a MEV flash bot.
By default, DeepAI bot transactions will automatically set the slippage to 'Auto' unless you have manually updated.
An MEV (Maximal Extractable Value) flash bot can beat your buy or sell by detecting your pending transaction and quickly executing a similar transaction with higher fees, ensuring it gets processed first. This allows the bot to profit from price changes caused by your trade before yours is completed. This is known as front-running.
Click 'Slippage setting'
Enter your slippage amount (using the details as above)
Your slippage is now set to your manual setting for buy and sell.