# Price Impact, Slippage and Safe Mode

### **Understanding Price Impact, Slippage, and Safe Mode** <a href="#h_a538bdc26d" id="h_a538bdc26d"></a>

**Price Impact**

* **Price Impact** is the change in a token price that is directly caused by your trade and reflects how much total liquidity is available for the token you are trading.&#x20;
* Price Impact is directly correlated with onchain liquidity. The more Liquidity held in liquidity pools, the lower your Price Impact may be and vice versa.&#x20;

**Price Slippage**

* Price Slippage is the change in token price between the *expected* price and the *executed* price that you receive.&#x20;
* Slippage is the change in actual tokens between what you expected to receive to what you actually received when executing a Swap.
* Slippage can occur:
  * During market volatility
  * Due to a lack of liquidity
* **Slippage Settings**
  * You can adjust your Slippage settings to reduce the % of Slippage during Trades. If a Trade experiences Slippage that is higher than your Slippage Settings, the Trade will revert and cancel.

**Safe Mode**

* If your Trade causes a price impact that is over 5% you will not be able to execute the Swap unless you turn off 'Safe Mode'. Turn off Safe Mode by clicking on the Settings button and then toggling off 'Safe Mode'.

<figure><img src="https://content.gitbook.com/content/gIE8OYZOtAU6RxUiPVcU/blobs/GffhPTIj8feYBSFteXrv/image.png" alt=""><figcaption></figcaption></figure>

***

### **General Disclaimer** <a href="#h_2ae2f6a5f7" id="h_2ae2f6a5f7"></a>

This document is intended for informational purposes only and should not be construed as financial, legal, or investment advice. The contents of this document do not constitute an offer or solicitation to buy or sell any tokens or participate in any trading strategies. The decision to trade tokens involves substantial risk and should be made independently by the reader with consideration to their financial situation and investment objectives.


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