Price impact comes from the order
Price impact is the change in execution price caused by trading against available liquidity. A large swap relative to a pool, or an order that consumes several book levels, usually has more impact than a small one in the same market.
For example, buying one unit from the best ask can fill at $100. Buying ten units may require additional sellers at $101 and $102. The average price reflects the whole order, not just the cheapest unit visible.
Slippage is the change from expectation
Slippage is the difference between an expected price and the actual execution price. It can come from market movement, delay or changing liquidity between a quote and a fill. Depending on context, some interfaces include several effects in their slippage estimate.
A buy quoted at $100 that fills at $101 has 1% adverse price slippage. A better fill can produce favorable slippage. Compare the same quantity and include explicit fees separately so you do not count a cost twice.
Tolerance is a boundary, not a fee
A 1% slippage tolerance does not mean every trade costs an extra 1%. It sets an execution boundary relative to the quote, using the protocol’s rules. A tighter boundary can make a transaction fail when the market moves; a wider one allows a worse result.
Inspect minimum received, route, network costs and price impact before signing. Raising tolerance repeatedly to force a trade through can accept a result far from the one that first looked attractive.
Apply it to agents and copied trades
Repeated small trades can accumulate costs. Agents need a sensible slippage setting and an order size suited to available liquidity. A copied trade can execute after the leader’s trade, so your entry may differ even with the same strategy.
In TRUE, compare the quote, signed transaction and completed fill. If execution differs from your intention, review size and liquidity before changing the tolerance. A smaller order or a different execution instruction may fit the objective better.