# Price Impact Protection

**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**.

***

#### 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.

***

#### 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.

***

#### 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.

***

#### 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.