What is a Price Drop?

Note:
Always be aware of the trades you are doing on the app.
These are irreversible and may lead to loss of funds.

How does slippage occur?

Like any market, prices are based on supply and demand. The liquidity of a token you are trying to buy or sell depends on the active limit orders placed on a DEX. A limit order is determined by you and by anyone who places an order on the Exchange. Swapping of tokens via smart contracts are not different. However, tokens with low liquidity can experience big price changes if you are trying to swap large amounts of tokens, because there aren’t many open orders.

This is known as slippage.

How does Trust Wallet show the slippage?

Trust Wallet now calculates the final price based on swap amounts and displays a red pill if the price drops below 1%. Trust Wallet also added a precaution that prevents swaps if the price drop will be larger than 30%.

Learn more about the Risks of DEX Trading here:

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