Chapter 4: Slippage, Approvals and Swap Risk

A swap is not just one click

A swap usually includes a quote, slippage settings, token approval and final confirmation. Each step deserves attention because each step controls a different risk.

Slippage protects execution, but can cost value

Slippage tolerance says how much price movement you accept before the transaction fails. Too low and the swap may not execute. Too high and you may accept a much worse price than expected.

Approvals give spending permission

Before a decentralized app can use a token, the wallet may need to approve spending. Approvals can be limited or broad. Broad approvals are convenient, but they also increase damage if a connected contract is unsafe.

Read the wallet confirmation

Wallet popups are not decoration. They show network, asset, fee and contract interaction. If the confirmation does not match what you expected, cancel and check again.

The useful habit

Use small test swaps, avoid extreme slippage unless you understand the reason, and review approvals regularly. A careful swap is slower, but usually cheaper than a mistake.