see a quoted price on the screen, tap Swap, and then notice the final amount you receive is smaller than expected.
That gap isn’t a hidden fee—it’s a normal outcome of how Automated Market Makers (AMMs) function, commonly called slippage.
Understanding slippage is key to keeping your funds safe.
How AMM pricing really works
Traditional exchanges rely on order books and market makers to match buyers and sellers at agreed prices.
An AMM, however, uses a mathematical formula to keep two tokens in balance inside a liquidity pool.
When you buy a large amount of TON, you remove TON from the pool and add USDT.
This shift makes TON more scarce and USDT more plentiful, so the algorithm automatically increases TON’s price for each additional unit purchased within the same transaction.
Small trades vs. large trades
Minimal slippage: When your trade size is tiny compared to the pool’s liquidity, the balance barely moves.
Significant slippage: When your trade is large relative to the pool, the balance changes sharply pushing the execution price against you.
The safety feature: “Minimum Received”
Many users confuse slippage tolerance with a fee they must pay.
On STON.fi, this appears as Minimum Received, which tells the smart contract:
If the price drops by more than a chosen percentage before the swap finishes, cancel the transaction.
This mechanism protects traders from front-running bots and sudden volatility that may occur between confirmation and final blockchain settlement.
Fee on transfer tokens
Some tokens include built-in transfer taxes for instance, deducting 5% from every transaction.
When swapping these assets, your slippage tolerance must be higher than the tax.
If the tax is 5% but tolerance is only 1%, the swap will fail because the received amount falls below the allowed minimum.
Smarter routing, lower slippage
Advanced routing solutions such as the Omniston protocol help reduce slippage by directing trades through the deepest available liquidity, improving execution and preserving more of your value.
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