Slippage Explained

What is slippage

Slippage is the difference between the price you expect when you submit a swap and the price you actually get when the transaction executes. On any decentralized exchange, prices change between the moment your order is created and the moment it is confirmed on-chain. Slippage tolerance is the maximum difference you are willing to accept.

If the actual execution price falls outside your slippage tolerance, the transaction fails and you only lose the network fee. If it falls inside, the swap goes through at whatever price the market gives you. Higher slippage tolerance means swaps execute more often, but you risk getting a worse rate than expected. Lower tolerance protects you from bad fills but increases the chance of failed transactions.

Why slippage happens

Slippage happens for three main reasons. First, the price can move between quote and execution, especially for volatile tokens. Second, your own order moves the pool price — large orders against thin liquidity will execute at worse rates than the initial quote. Third, other traders can front-run or back-run your transaction, changing the pool state before your swap lands.

Recommended slippage by trade type

0.1% — stablecoin swaps. USDC/USDT and other dollar-pegged pairs rarely move more than 0.05%. Use the tightest tolerance to protect against bad fills.
0.5% — major pairs. SOL/USDC, SOL/USDT, JUP/SOL. Default for most trades.
1-2% — liquid memecoins. BONK, WIF, PENGU. These move faster than major pairs but have deep liquidity.
5% — volatile memecoins. FARTCOIN, POPCAT, and other tokens with moderate liquidity.
10-50% — fresh launches. Tokens launched in the last few hours on Pump.fun or similar. Only use for amounts you can afford to lose.

How to think about slippage risk

Every swap has two failure modes. With too-low slippage, transactions fail repeatedly and you waste time and fees. With too-high slippage, a malicious actor or unlucky price movement can execute your swap at a much worse rate than you intended. The right balance depends on the trade: for established tokens, keep slippage tight; for fresh or volatile tokens, accept higher risk to ensure execution.

One rule of thumb: check the current spread and 24h volatility of the token before setting slippage. If the token has moved 20% in the last hour, 0.5% slippage will not execute. If the token has been stable for weeks, 5% slippage is reckless.

Slippage on KingSwap

KingSwap lets you set slippage in the swap widget. Click the gear icon in the top right of the widget, choose 0.1%, 0.5%, 1%, 5%, or enter a custom value. Your setting is preserved for the session and applied to every swap you make. The slippage you set is the maximum you will accept — you will often get a better rate than the limit.

Frequently Asked Questions