The difference between the expected price of a trade and the price at which it is actually executed. Slippage occurs due to market volatility or insufficient liquidity: by the time a transaction is processed, the asset's price has already moved. The effect is most pronounced on decentralized exchanges (DEXs) when trading low-liquidity pairs or during periods of sharp market moves. To mitigate slippage risk, most DEX platforms allow users to set a slippage tolerance threshold: if the price deviation exceeds this limit, the transaction is automatically cancelled.