Slippage & Budget Caps: Risk Guards That Actually Help

Overview

Practical caps for slippage and budget that prevent tail risks.

TL;DR

• Tight caps reduce tail loss events.
• Canary sizing for new routes.
• Monitor realized slippage vs target.

Key points

• Clear definitions and when this topic matters for MEV practitioners.
• Step-by-step guidance you can apply inside FRB today.
• Risk notes and guardrails (no profitability guarantees).

Walkthrough

1. Setup — ensure reliable RPC/WSS endpoints and time-sync.
2. Configuration — start with simulation/canary, set slippage and budget caps.
3. Execution — prefer private bundles when available; monitor inclusion and adjust.
4. Review — log outcomes, tweak filters, and iterate conservatively.

Example

• Set per‑trade gas cap and session budget before enabling live.
• Start with 1/10th size on new strategy.

Checklist

• [ ] Slippage cap set (per route)
• [ ] Gas cap set (per trade)
• [ ] Session budget set
• [ ] Canary size enabled for new routes

Risk & compliance

MEV is experimental and high-risk. Slippage, inclusion uncertainty and reorgs can cause losses. You are responsible for legality in your jurisdiction.

Next steps

Use the FRB agent to scan mempools and submit private bundles with custody preserved.
→ Try FRB or watch the 2‑min demo on the homepage.