Slippage
Strict Definition
"The difference between the expected price of a trade and the actual price at which the trade is executed, often caused by low liquidity or high volatility."
Liability Check // Risk Analysis
The 'Capital Erosion' risk. In illiquid markets, a large buy order can push the price up significantly before the order is finished, resulting in millions of dollars in lost value for corporate treasuries.
Knowledge Context // Related Terms
Auditor NotesVS-AN-2026
"Execute large orders using 'TWAP' (Time-Weighted Average Price) or OTC (Over-the-Counter) desks rather than single on-chain trades."
"Configure 'Slippage Tolerance' settings in DeFi interfaces to automatically cancel trades if the price moves more than 0.5% - 1.0%."
"Document slippage losses as 'Execution Costs' in financial reports to explain variance between market price and booked cost."
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: H7TTZH