# What is price impact?

The price impact of a user's individual trade on the market price of an underlying asset pair is known as price impact. It is proportional to the amount of liquidity available in the AMM. Price impact can result in fund losses if the illiquid markets are too high.

\--> Let’s take the example of the price impact. In the case of the illiquid market, Alice might trade $90 worth of SOL for $70 worth of C98. It might be caused by the price impact.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.saros.xyz/saros-amm/faqs/price-impact.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.