> ## Documentation Index
> Fetch the complete documentation index at: https://docs.priest.trade/llms.txt
> Use this file to discover all available pages before exploring further.

# Slippage & Execution

> Understanding price impact and execution parameters ensures that your trades execute as expected without unnecessary loss.

Understanding price impact and execution parameters ensures that your trades execute as expected without unnecessary loss.

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## 1. What Causes Slippage?

Slippage is the difference between the expected price shown when you submit an order and the actual execution price when the transaction confirms on-chain.

Slippage arises from two distinct sources:

1. **Price Impact:** The mathematical shift along the bonding curve or spot order book caused by the size of your own order relative to available liquidity depth.
2. **Market Movement:** Price changes caused by other traders whose transactions confirmed in the same or preceding block.

***

## 2. Execution on the Primary Rail (vAMM)

On the vAMM, every market fill executes along the constant-product curve ($x \cdot y = k$):

* \*\*Small Orders ($< \$500$):** Negligible price impact ($\< 0.05%\$).
* **Large Orders ($> \$10,000\$):** Noticeable curve impact. The order panel displays your exact estimated price impact before you submit.
* **Slippage Parameter:** Passed as `maxSlippageBps` to `openPosition()` and `closePosition()`. If rapid external trades move the entry price beyond this threshold, the contract will revert with `SlippageExceeded()`.

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## 3. Execution on the Secondary Rail (Oracle & Uniswap v4)

On the Secondary Engine, execution differs fundamentally:

* **Worst-Of Price Floor:** Takers fill at the worse of spot and oracle price.
* **Skew Premium:** Fills are subject to an open interest skew premium that scales with net imbalance between longs and shorts.
* **Path Averaging:** The contract integrates the skew curve across your entire trade size. Attempting to split a $10,000 order into ten $1,000 sub-transactions yields the exact same total slippage and cost, protecting the market from MEV fragmentation.

***

## 4. Recommended Slippage Settings

In the trade settings modal:

* **Normal Market Conditions:** `0.5% – 1.0%`
* **High Volatility / Fast Moves:** `1.5% – 2.5%`
* **New Launches (Warmup Phase):** `2.0% – 3.0%`


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