Price impact

Price impact shows how far your order will move the price in the pool. In an AMM the price follows the ratio of tokens in the pool, so every buy takes the memecoin out and raises its price for the next part of the same order. The average price you pay is therefore worse than the price shown before the swap.

The size of the effect depends on the order relative to the pool's depth. A buy worth one percent of the pool moves the price slightly; one worth twenty percent moves it a lot. Price impact is a cost known in advance, shown in the quote before you sign. It differs from slippage, which is a tolerance limit for price changes between quote and execution, and from network and platform fees.