What is slippage?

Slippage is the difference between the expected price of a trade and the actual price you receive once the transaction is confirmed on the blockchain. It happens because cryptocurrency prices can change between the time you submit a trade and the time it is executed.

How slippage works

You submit a swap at a quoted price.

The transaction is broadcast to the blockchain and waits to be confirmed.

While waiting, the market price of the token may move.

The final executed price may differ from the original quote.

Types of slippage

Positive slippage - you receive more tokens than expected because the price moved in your favour.

Negative slippage - you receive fewer tokens than expected because the price moved against you.

Why slippage matters

Volatile markets - fast-moving prices increase the chance of slippage.

Low liquidity - tokens with thin liquidity pools are more prone to slippage.

Large trades - bigger transactions are more sensitive to price movements.

Managing slippage in Wraith Wallet

Wraith Wallet allows you to set a slippage tolerance (the maximum deviation from the quoted price you are willing to accept).

If the final price moves beyond your set tolerance, the transaction will fail instead of executing at a worse rate.

Adjusting slippage tolerance is useful for volatile tokens but should be done carefully.

Key points to remember

Slippage is the difference between your expected and actual swap price.

It can be positive or negative depending on market movement.

Wraith Wallet lets you control slippage tolerance to protect your trades.

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