Slippage refers to the difference between the expected price of a trade when an order is placed and the actual price at which it is executed caused by market fluctuations during transaction processing.

Moonshot is not an exchange—it’s a self-custody blockchain wallet that lets you interact with decentralized exchanges (DEXs) on the blockchain through Jupiter Aggregator, a smart contract that routes through several DEXs for better pricing. Instead of using traditional order books, these platforms rely on automated market makers (AMMs) and liquidity pools to process trades.

For a better understanding of decentralized exchanges and automated market makers, check out this article.

By default, Moonshot applies a dynamic slippage tolerance of up to 10% to accommodate market volatility. For example, if you’re purchasing $100 worth of a token, you may receive tokens valued between $90 and $110, depending on market conditions at the time of execution.

You can modify the slippage tolerance from 0.5% to 20% by clicking the settings icon in the buy/sell modal.

Please note: Change these settings at your own risk; you are responsible for your transactions.

Price Impact refers to how your trade affects the market price, particularly for large orders relative to the token’s liquidity. Placing a significant order can consume much of the available liquidity, pushing the price up or down, which might result in you paying more or receiving less than the price displayed when you place your order.

Placing a large buy order in a low-liquidity market can increase the token’s price as you compete for a limited supply. Similarly, a large sell order can decrease the price due to increased supply.

To minimize price impact on a large position, people often split their trade into smaller transactions. This can help distribute the effect over time or across different price points, reducing market movement caused by your order.