Price Impact is the change in digital asset price caused by your trade. Price impact is determined by comparing the current market price with the effect of your trade on the overall liquidity of a pool.

When the pool has high liquidity your trade won't affect the price as much. But if there are only a few tokens available, your trade can have a bigger impact on the price. So, the bigger the impact, the worse price you might get.

Please keep in mind that the price impact can vary because the overall value of a liquidity pool changes when the supply and demand for each token fluctuates.