Price Impact Protection

Protects users from losses caused by unfavorable trade execution

Krystal enforces maximum price impact on all automation orders, safeguarding users from excessive losses caused by poor execution.

These protections apply to every automation type:

• Auto Rebalance

• Auto Exit

• Auto Compound

• Auto Harvest

Platform thresholds:

• 10% for automations of strategies/positions

• 20% for automations in Vaults

This safeguard is always active and requires no user configuration.

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What is Price Impact?

Price impact is the change in a token’s price caused by your own trade.

• The larger your trade relative to the pool’s liquidity, the more you push the price against yourself.

• This results in a worse execution rate than what was initially quoted.

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Why Price Impact Happens

• Large trades move the market more, especially in small pools.

• Low liquidity means there’s not enough supply to fill your order at a stable price

• Volatile tokens can shift in price even during small trades.

Even if a token’s price is going up, a trade can still fail or return fewer tokens if the pool can’t support the size of your order.

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Price Impact vs. Slippage Tolerance

These concepts are related but not identical:

• Price Impact: The actual change in pool price caused by executing your trade.

• Slippage Tolerance: The maximum deviation from the quoted price that you (or the platform) are willing to accept.

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Summary

• 10% threshold → Position/Strategy automation

• 20% threshold → Vault automation

• Always-on safeguard, not user-configurable

• If a trade would exceed 10% (strategies) or 20% (vaults), the transaction is automatically reverted.

• This protects users from excessive losses due to unfavorable execution.