Price Impact

Price impact is a protective measure designed to prevent market manipulation. When the size of opening a position or burning PUSD is large enough to significantly affect the overall market liquidity, closing the position or minting PUSD within the next two hours will incur a certain price impact, and vice versa.

This impact fluctuates based on subsequent trading activity and decreases linearly over time. Essentially, any trading activity's price impact on subsequent trades will gradually reduce to zero within one hours.

For most users engaging in normal trading activities, price impact is typically negligible or non-existent. If you encounter a high price impact, it is advisable to wait for a while before trading, as high price impacts are typically temporary.