Price impact is the difference between the expected price of a token and the actual price you get when the trade is executed. It happens when your trade size is large compared to the available liquidity in the pool.
Low price impact: Your trade executes close to the listed market price.
High price impact: Your trade moves the market, so you may receive fewer tokens than expected.
In short, the more liquidity a pool has, the lower the price impact on your trade. On Jupiter, routing through multiple pools helps reduce price impact and improve your final execution price.
Note:
- Jupiter simulates your trade and displays the exact price impact in the swap widget. If the price impact is high, we strongly recommend avoiding the trade, as it could result in a significant loss of funds.
- The displayed price impact includes Ultra fees (2-10 bps depending on the pair) and fees for gasless trades (up to 10% of your input amount).