Everything you need to know about price impact when swapping crypto in Exodus Swap.
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In this article:
What is price impact?
Price impact describes how much your swap directly affects a token's price.
High price impact often results from low market liquidity, which occurs when there aren’t many active buyers or sellers for a token. With low liquidity, even small swaps can noticeably change the token’s price.
A high price impact can be most noticeable with swaps routed through decentralized exchanges (DEXs), especially if the swap involves custom tokens.
For example, if you are swapping a token pair with low liquidity through a DEX, the swap can significantly affect the price ratio between the token pair so much that the value of the tokens you receive is much lower than the value of the tokens you swap.
As a self-custody wallet, Exodus gives you full control over your crypto. This means Exodus doesn’t restrict any transactions you choose to make, including swaps with a high price impact. However, your wallet will notify you when initiating a swap with a high price impact, ensuring you’re fully informed before deciding how to proceed.
Why am I getting a price impact warning?
In Exodus Mobile and Web3 Wallet, a warning appears if the price impact is unusually high. This indicates the tokens you receive may be worth significantly less, or even nothing, after completing the swap.
The warning also shows the price impact as a percentage, with a higher percentage indicating a greater difference in value. For example, a price impact of 99% means the tokens you receive will be worth 99% less than the tokens you swapped from.
If the price impact for a swap is high, avoid completing the swap to prevent any potential losses.
Mobile
Web3 Wallet
What is price impact vs. slippage?
It is important to note that price impact is not the same as slippage.
Price impact
Price impact refers to the change in a token's price directly caused by your trade. It happens when your trade influences the available liquidity.
This often affects tokens with lower liquidity, such as custom tokens, when swapping on DEXs.
A high price impact can result in the tokens you receive being worth significantly less than the tokens you swapped.
Slippage
Slippage refers to the difference between the price you anticipated before the trade and the actual price you paid after the trade is completed. It accounts for overall market movement and volatility during the transaction.
For example, if you start a swap and the token's price changes before the swap is completed, the number of tokens you receive may be different from what you expected.
Web3 Wallet supports adjusting slippage for swaps. To learn more, visit How do I adjust the slippage settings?