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slippage in perps: definition and how to think about it

what is slippage in perpetual futures? a clear definition, why it happens, and how slippage shows up on uponly.win and other perp dexes.

uponly team5 min readGlossary

slippage is the difference between the price you expected when you submitted an order and the price you actually got when it executed. on perpetual futures, slippage shows up as a small (or sometimes large) gap between the quote on your screen and the fill price reported back on-chain. it is caused by latency, order book depth, price impact of your own order, and oracle update timing. on high-leverage perps, even tiny slippage can move your effective liquidation price meaningfully.

in plain english

you see 100 dollars on the screen. you tap buy. the trade fills at 100.05. that 0.05 is slippage. sometimes slippage helps you (you get a better fill than expected). usually it hurts a little. on a one-tap rip product, slippage is part of the cost of "i wanted in right now."

what causes slippage on perps

there are four main sources, and they often combine:

  • price impact: your own order moves the market because the available liquidity at the best price is thin.
  • latency: between submitting and executing, the market price moved.
  • oracle drift: the price feed used to settle your order updated between quote and fill.
  • spread: the difference between bid and ask, especially on smaller pairs.
at 500x leverage, a 0.2 percent slippage on entry is the entire liquidation buffer. on the highest leverage tiers, slippage is not a footnote, it is a primary risk factor.

why slippage exists

markets are not static. between the moment you see a price and the moment a transaction lands, things move. on-chain perps have block times. liquidity pools have curves. oracles refresh on intervals. all of those produce slippage. it is a feature of any real market, not a flaw of any one venue.

how it shows up on uponly.win

when you tap rip, the order is sent to avantis on base. the entry price you see in your position summary is the actual fill price returned by the protocol, not the quote on your screen. on typical small rips, slippage is negligible. on larger sizes or on thinner pairs that you may land on randomly, slippage can be a few basis points. uponly does not add a spread mark-up; you pay whatever avantis routes through. for the structural details, see how uponly was built in one night.

common confusions

slippage is not a fee. it is a market mechanic. fees are deterministic and charged by the protocol. slippage is variable and is paid implicitly via a worse fill price. people sometimes also confuse slippage with funding: funding is paid over time, slippage happens at the moment of execution.

  1. slippage is at execution, funding is over time, fees are at open and close.
  2. larger order size means larger price impact.
  3. volatile markets have wider spreads and more latency-driven slippage.
  4. on perps, slippage applies on both open and close.

see also

curious how slippage looks on a real rip? open uponly, do a small rip, and compare the quoted price to the fill in your position card. that gap is slippage, in real life.

Frequently asked questions

what is slippage in crypto?

the difference between the price you expected and the price you actually got. it happens because markets move between the moment you submit an order and the moment it executes.

is slippage a fee?

no. fees are charged by the protocol on top of execution. slippage is the implicit cost of a worse-than-expected fill. they are separate.

does uponly charge slippage?

no. uponly does not add a slippage spread of its own. you get whatever the avantis routing returns. slippage on uponly is just the natural execution slippage of avantis on base.

how do i reduce slippage?

use smaller order sizes relative to available liquidity, and trade on deeper pairs. limit orders also reduce slippage compared to market orders, when supported.

why is slippage worse at high leverage?

because your liquidation buffer is tiny at high leverage. even a small slippage on entry can move you significantly closer to liquidation before the trade has had a chance to play out.

#slippage#glossary#perps#execution

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