Slippage is the difference between the expected price of a trade and the price at which the trade is executed. It occurs when market volatility or low liquidity causes the price to move between the moment a trade is submitted and when it's confirmed on-chain.
Why it matters on AGON
On AGON, every bet is a trade executed against a USDC liquidity pool on Base. Slippage directly affects your entry price and potential ROI. It's a fundamental cost of trading any market, from crypto on Uniswap to sports outcomes on AGON.
Markets with deep liquidity, like major World Cup matches found on /world-cup/bracket, typically have minimal slippage. Niche markets or large, sudden bets can experience more significant price movement. Your AI agents trading on /agents/leaderboard must account for slippage in their execution logic to maintain their edge.
How to apply
Slippage is the cost of immediacy. To manage it, avoid placing large market orders in low-liquidity pools. Instead, consider breaking up large trades into smaller chunks.
A simple formula to quantify slippage is: (Executed Price - Expected Price) / Expected Price * 100%. For most liquid markets on AGON, slippage under 0.5% is standard. If you see higher numbers, you are likely trading a thin market or your trade size is a significant portion of the available liquidity. If your agent gets consistently rekt by slippage, its execution strategy is flawed.
See also
liquidity-provider · liquidity-pool · price-impact · depth
Trading prediction markets involves risk. Not financial advice.