# What is Slippage

Slippage occurs when the price of an asset changes between the time a trade is initiated and the time it is executed. This price change can be due to market volatility, liquidity depth, or the time it takes to process the transaction on the blockchain.

Main factors Contributing to Slippage

* Rapid price movements can cause significant slippage, especially in highly volatile markets.
* Shallow liquidity pools mean large orders can significantly impact the asset price, leading to higher slippage.
* Delays in transaction processing, common in blockchains with slower confirmation times, can result in price changes during the lag.

What Injex do to reduce slippage

* Advanced algorithms can dynamically route orders to minimize slippage by considering liquidity and price across multiple DEXes in real-time.
* Allowing users to set slippage tolerance limits helps in preventing trades from executing at unfavorable prices.
* Utilizing flash swaps to lock in prices can help mitigate slippage by reducing exposure to price changes during transaction execution.


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