- Price impact describes how an order changes the available price.
- Slippage describes a difference between quoted and executed results.
- A higher tolerance is permission for a worse fill, not a guarantee of execution.
Two different effects on the same swap
A swap quote is a snapshot. It depends on the route, liquidity and size of the order when you request it. Two effects can make the final trade less attractive: your own order can move the price, and market conditions can change while the transaction is waiting.
Price impact and slippage often appear together in a trading interface, but they answer different questions. Review both before choosing an order size.
Price impact starts with your order size
In a liquidity pool, the quantity you buy or sell changes the pool's balances. A larger order relative to available liquidity can receive a worse average execution price. The quoted impact is an estimate for the route shown at that moment.
An order that looks small in dollars can still have a large impact in a thin market. The market capitalization of a token does not tell you how much liquidity is available on your chosen route.
- Compare the expected output for several order sizes.
- Check the actual route and pool liquidity.
- Avoid assuming that a high market capitalization means a deep trading market.
What is slippage in a crypto swap?
Other trades can change pool balances after a quote is created. When your transaction executes, the available output can differ from the number you first saw. A slippage setting defines a tolerated difference according to the product's execution rules.
For a simple illustration, if a quote shows 100 tokens and the execution rule permits 1% less output, its minimum would be 99 tokens. Price impact is already reflected in the original quote; the slippage allowance concerns a later change. The example excludes fees and actual Cove route rules.
Raising the tolerance does not create liquidity or reduce your order's impact. It can allow a transaction to execute at a less favorable price. Review the minimum received amount whenever the interface provides one.
Check the active Cove profile
Send /slippage, use change on the token panel, or open Settings → Guardrails → Slippage. Cove offers 10%, 20%, 40% and 80% presets, plus a 1–100% custom value. The documented new-user starting value is 15%; existing profiles may differ. Cove warns for values above 20%.
Guardrails also include Liquidity protection and High price-impact confirmation. The former can block buys that are too large relative to reported pool liquidity; the latter can request review for a high-impact or unknown-impact buy or sell. Degen mode sets 100% slippage and disables liquidity protection while active. It is not a fix for an unsafe token or route.
What to review before confirming
Verify the token's full address and network first. Then check the selected wallets, size, liquidity, slippage line, latest quote and any scam or high-impact warning in Cove. A fast workflow still benefits from a deliberate final review.
A quote can worsen between checks. Automated orders can remain armed after an unsuccessful attempt; check /orders and the actual trade receipt before retrying. For a thin market, a smaller trade or staged exit may change the quote, but neither guarantees a fill.
Sources & further reading
Product settings and availability can change. Check the current documentation before using a feature. Educational content does not predict trading outcomes.
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