What are gas, slippage, and price impact?

DEX · 3 of 5

All three can affect a trade, but they are not the same cost. Gas is paid to the network for processing a transaction; it must not be confused with a platform fee.

Three separate concepts

  • Gas: the cost of computation and network space, generally paid with the network's native asset.
  • Slippage: the difference between quoted and executed results as conditions change during processing.
  • Price impact: movement caused by your order consuming liquidity; it tends to grow when an order is large relative to the pool.
  • Interface or protocol fee: a separate charge, when one exists, that should be displayed separately.

Simple example

  1. A quote estimates that you will receive 100 tokens.
  2. Your order moves the pool price while the network takes time to confirm it.
  3. The result may be lower within the permitted limit, and you also pay the gas shown by your wallet.

Liquidity, volatility, size, and inclusion time can change the result. A wider tolerance may help execution but also accepts more variation.

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