Price Slippage is when the executed price of your trade is different than the quoted price.
When you make a market order you decide the amount of tokens you are giving in the trade. In return you get the best trade rate available in the market. RELAY gives you the best estimate of what the trade rate will be. If the open order from the estimate is unavailable, your market order will execute against the next best available order. Orders can become unavailable if they expire, are cancelled, become invalid, or are filled by another user.
For example, you were trading 1ETH and the estimated return was 400 USDC. If the order you expected to fill was not available and instead you received 397 USDC that would be 0.75% slippage.
If there are very few orders available or if markets are very volatile the slippage on orders can be very high. RADAR RELAY allows you to set your slippage limit to prevent big changes.
For example, you were trading 1ETH and the estimated return was 400 USDC again. If the order was unavailable and the next best order would return 350 USDC, that would be 12.5% slippage. If your slippage limit is 1% an order like that would fail. Submitting an order to the chain still costs gas but this saves you from having price slippage beyond your limit.
The default slippage limit on RADAR RELAY is 1%.
You can change the slippage limit in the options under Trade Details.
- Click on the "Trade Details" button
- Select your desired slippage, or input a custom percentage
Slippage is different to Market Impact. Slippage is caused by changes in the available orders. Market Impact is the change in price based on the size of your trade.