# Slippage Slippage is the difference between the expected price and the actual execution price of a trade. For leveraged tokens, slippage can occur during minting, burning, and rebalancing. ## When Slippage Occurs ### Minting and Burning When you buy (mint) or sell (burn) a leveraged token, the protocol executes trades on the underlying markets to adjust the position. If the trade size is large relative to available liquidity, the execution price may differ from the quoted price. ### Rebalancing During automated rebalancing, the protocol adjusts positions to maintain the target leverage. These trades also interact with onchain liquidity and can experience slippage, especially during volatile markets when many positions are being adjusted simultaneously. ## What Affects Slippage * **Trade size**: Larger trades tend to have more slippage * **Market liquidity**: Tokens backed by assets with deep liquidity (BTC, ETH) typically have lower slippage than altcoin tokens * **Market conditions**: High volatility periods can increase slippage across all tokens * **Chain**: Liquidity varies across chains. Arbitrum generally has the deepest onchain liquidity for Toros tokens ## How Toros Manages Slippage Toros uses several approaches to minimize slippage: * Optimized trade routing across available liquidity sources * Rebalancing thresholds that avoid unnecessary small trades * Position sizing that accounts for available market depth ## Practical Considerations * For large deposits or withdrawals, slippage may be more noticeable. Consider splitting large trades into smaller amounts. * Check the quoted price and expected slippage shown in the Toros app before confirming a transaction. * Tokens on Arbitrum generally offer the best liquidity and lowest slippage. For more on how leveraged tokens work, see the [Overview](/leveraged-tokens/overview.md). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.toros.finance/leveraged-tokens/slippage.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.