diff --git a/src/hooks/useSwapSlippageTolerance.ts b/src/hooks/useAutoSlippageTolerance.ts
similarity index 92%
rename from src/hooks/useSwapSlippageTolerance.ts
rename to src/hooks/useAutoSlippageTolerance.ts
index 7b75c75085..07696d8b72 100644
--- a/src/hooks/useSwapSlippageTolerance.ts
+++ b/src/hooks/useAutoSlippageTolerance.ts
@@ -8,7 +8,6 @@ import useNativeCurrency from 'lib/hooks/useNativeCurrency'
 import { useMemo } from 'react'
 import { InterfaceTrade } from 'state/routing/types'
 
-import { useUserSlippageToleranceWithDefault } from '../state/user/hooks'
 import useGasPrice from './useGasPrice'
 import useUSDCPrice, { useUSDCValue } from './useUSDCPrice'
 
@@ -29,7 +28,10 @@ function guesstimateGas(trade: Trade<Currency, Currency, TradeType> | undefined)
 const MIN_AUTO_SLIPPAGE_TOLERANCE = new Percent(5, 1000) // 0.5%
 const MAX_AUTO_SLIPPAGE_TOLERANCE = new Percent(25, 100) // 25%
 
-export default function useSwapSlippageTolerance(
+/**
+ * Returns slippage tolerance based on values from current trade, gas estimates from api, and active network.
+ */
+export default function useAutoSlippageTolerance(
   trade: InterfaceTrade<Currency, Currency, TradeType> | undefined
 ): Percent {
   const { chainId } = useActiveWeb3React()
@@ -41,7 +43,7 @@ export default function useSwapSlippageTolerance(
   const nativeCurrency = useNativeCurrency()
   const nativeCurrencyPrice = useUSDCPrice(nativeCurrency ?? undefined)
 
-  const defaultSlippageTolerance = useMemo(() => {
+  return useMemo(() => {
     if (!trade || onL2) return ONE_TENTHS_PERCENT
 
     const nativeGasCost =
@@ -73,6 +75,4 @@ export default function useSwapSlippageTolerance(
 
     return V3_SWAP_DEFAULT_SLIPPAGE
   }, [trade, onL2, nativeGasPrice, gasEstimate, nativeCurrency, nativeCurrencyPrice, chainId, outputDollarValue])
-
-  return useUserSlippageToleranceWithDefault(defaultSlippageTolerance)
 }
diff --git a/src/lib/components/Swap/Settings/MaxSlippageSelect.tsx b/src/lib/components/Swap/Settings/MaxSlippageSelect.tsx
index 8d7b004103..004c1bf7ff 100644
--- a/src/lib/components/Swap/Settings/MaxSlippageSelect.tsx
+++ b/src/lib/components/Swap/Settings/MaxSlippageSelect.tsx
@@ -1,7 +1,8 @@
 import { t, Trans } from '@lingui/macro'
+import { Percent } from '@uniswap/sdk-core'
 import { useAtom } from 'jotai'
 import { Check, LargeIcon } from 'lib/icons'
-import { MaxSlippage, maxSlippageAtom } from 'lib/state/settings'
+import { maxSlippageAtom } from 'lib/state/settings'
 import styled, { ThemedText } from 'lib/theme'
 import { ReactNode, useCallback, useRef } from 'react'
 
@@ -54,36 +55,31 @@ function InputOption<T>({ value, children, selected, onSelect }: OptionProps<T>
 }
 
 export default function MaxSlippageSelect() {
-  const { P01, P05, CUSTOM } = MaxSlippage
-  const [{ value: maxSlippage, custom }, setMaxSlippage] = useAtom(maxSlippageAtom)
+  const [maxSlippage, setMaxSlippage] = useAtom(maxSlippageAtom)
 
   const input = useRef<HTMLInputElement>(null)
   const focus = useCallback(() => input.current?.focus(), [input])
+
+  //@TODO(ianlapham): hook up inputs to either set custom slippage or update to auto
+  //@TODO(ianlapham): update UI to match designs in spec
+
   const onInputSelect = useCallback(
-    (custom) => {
+    (custom: Percent | 'auto') => {
       focus()
       if (custom !== undefined) {
-        setMaxSlippage({ value: CUSTOM, custom })
+        setMaxSlippage(custom)
       }
     },
-    [CUSTOM, focus, setMaxSlippage]
+    [focus, setMaxSlippage]
   )
 
   return (
     <Column gap={0.75}>
       <Label name={<Trans>Max slippage</Trans>} tooltip={tooltip} />
       <Row gap={0.5} grow>
-        <Option value={P01} onSelect={setMaxSlippage} selected={maxSlippage === P01} />
-        <Option value={P05} onSelect={setMaxSlippage} selected={maxSlippage === P05} />
-        <InputOption value={custom} onSelect={onInputSelect} selected={maxSlippage === CUSTOM}>
-          <DecimalInput
-            size={custom === undefined ? undefined : 5}
-            value={custom?.toString() ?? ''}
-            onChange={(custom) => setMaxSlippage({ value: CUSTOM, custom: custom ? parseFloat(custom) : undefined })}
-            placeholder={t`Custom`}
-            ref={input}
-          />
-          %
+        <Option value={'auto'} onSelect={setMaxSlippage} selected={maxSlippage === 'auto'} />
+        <InputOption value={maxSlippage} onSelect={onInputSelect} selected={maxSlippage !== 'auto'}>
+          <DecimalInput size={5} value={''} onChange={() => null} placeholder={t`Custom`} ref={input} />%
         </InputOption>
       </Row>
     </Column>
diff --git a/src/lib/hooks/swap/useSwapInfo.tsx b/src/lib/hooks/swap/useSwapInfo.tsx
index bebe1f33f9..90f7515bba 100644
--- a/src/lib/hooks/swap/useSwapInfo.tsx
+++ b/src/lib/hooks/swap/useSwapInfo.tsx
@@ -1,9 +1,11 @@
 import { Trans } from '@lingui/macro'
 import { Currency, CurrencyAmount, Percent, TradeType } from '@uniswap/sdk-core'
+import useAutoSlippageTolerance from 'hooks/useAutoSlippageTolerance'
 import { useClientSideV3Trade } from 'hooks/useClientSideV3Trade'
 import { atom } from 'jotai'
 import { useAtomValue, useUpdateAtom } from 'jotai/utils'
 import { useCurrencyBalances } from 'lib/hooks/useCurrencyBalance'
+import { maxSlippageAtom } from 'lib/state/settings'
 import { Field, swapAtom } from 'lib/state/swap'
 import tryParseCurrencyAmount from 'lib/utils/tryParseCurrencyAmount'
 import { ReactNode, useEffect, useMemo } from 'react'
@@ -86,9 +88,16 @@ function useComputeSwapInfo(): SwapInfo {
     [trade.trade?.inputAmount, trade.trade?.outputAmount]
   )
 
-  // TODO(ianlapham): Fix swap slippage tolerance
-  // const allowedSlippage = useSwapSlippageTolerance(trade.trade ?? undefined)
-  const allowedSlippage = useMemo(() => new Percent(100), [])
+  /*
+   * If user has enabled 'auto' slippage, use the default best slippage calculated
+   * based on the trade. If user has entered custom slippage, use that instead.
+   */
+  const autoSlippageTolerance = useAutoSlippageTolerance(trade.trade)
+  const maxSlippage = useAtomValue(maxSlippageAtom)
+  const allowedSlippage = useMemo(
+    () => (maxSlippage === 'auto' ? autoSlippageTolerance : maxSlippage),
+    [autoSlippageTolerance, maxSlippage]
+  )
 
   const inputError = useMemo(() => {
     let inputError: ReactNode | undefined
@@ -154,7 +163,7 @@ export function SwapInfoUpdater() {
   return null
 }
 
-/** Requires that SwapInfoUpdater be installed in the DOM tree. */
+/** Requires that SwapInfoUpdater be installed in the DOM tree. **/
 export default function useSwapInfo(): SwapInfo {
   return useAtomValue(swapInfoAtom)
 }
diff --git a/src/lib/state/atoms.ts b/src/lib/state/atoms.ts
index 14f666b16f..da9b26e432 100644
--- a/src/lib/state/atoms.ts
+++ b/src/lib/state/atoms.ts
@@ -34,43 +34,6 @@ export function pickAtom<Value, Key extends keyof Value & keyof Draft<Value>, Up
   )
 }
 
-/**
- * Typing for a customizable enum; see setCustomizable.
- * This is not exported because an enum may not extend another interface.
- */
-interface CustomizableEnum<T extends number> {
-  CUSTOM: -1
-  DEFAULT: T
-}
-
-/**
- * Typing for a customizable enum; see setCustomizable.
- * The first value is used, unless it is CUSTOM, in which case the second is used.
- */
-export type Customizable<T> = { value: T; custom?: number }
-
-/** Sets a customizable enum, validating the tuple and falling back to the default. */
-export function setCustomizable<T extends number, Enum extends CustomizableEnum<T>>(customizable: Enum) {
-  return (draft: Customizable<T>, update: T | Customizable<T>) => {
-    // normalize the update
-    if (typeof update === 'number') {
-      update = { value: update }
-    }
-
-    draft.value = update.value
-    if (draft.value === customizable.CUSTOM) {
-      draft.custom = update.custom
-
-      // prevent invalid state
-      if (draft.custom === undefined) {
-        draft.value = customizable.DEFAULT
-      }
-    }
-
-    return draft
-  }
-}
-
 /** Sets a togglable atom to invert its state at the next render. */
 export function setTogglable(draft: boolean) {
   return !draft
diff --git a/src/lib/state/settings.ts b/src/lib/state/settings.ts
index c098bf31c0..dff634a9d3 100644
--- a/src/lib/state/settings.ts
+++ b/src/lib/state/settings.ts
@@ -1,34 +1,26 @@
+import { Percent } from '@uniswap/sdk-core'
 import { atomWithReset } from 'jotai/utils'
 
-import { Customizable, pickAtom, setCustomizable, setTogglable } from './atoms'
-
-/** Max slippage, as a percentage. */
-export enum MaxSlippage {
-  P01 = 0.1,
-  P05 = 0.5,
-  // Members to satisfy CustomizableEnum; see setCustomizable
-  CUSTOM = -1,
-  DEFAULT = P05,
-}
+import { pickAtom, setTogglable } from './atoms'
 
 export const TRANSACTION_TTL_DEFAULT = 40
 
 interface Settings {
-  maxSlippage: Customizable<MaxSlippage>
+  maxSlippage: Percent | 'auto' // auto will cause slippage to resort to default calculation
   transactionTtl: number | undefined
   mockTogglable: boolean
   clientSideRouter: boolean // wether to use
 }
 
 const initialSettings: Settings = {
-  maxSlippage: { value: MaxSlippage.DEFAULT },
+  maxSlippage: 'auto',
   transactionTtl: undefined,
   mockTogglable: true,
   clientSideRouter: false,
 }
 
 export const settingsAtom = atomWithReset(initialSettings)
-export const maxSlippageAtom = pickAtom(settingsAtom, 'maxSlippage', setCustomizable(MaxSlippage))
+export const maxSlippageAtom = pickAtom(settingsAtom, 'maxSlippage')
 export const transactionTtlAtom = pickAtom(settingsAtom, 'transactionTtl')
 export const mockTogglableAtom = pickAtom(settingsAtom, 'mockTogglable', setTogglable)
 export const clientSideRouterAtom = pickAtom(settingsAtom, 'clientSideRouter')
diff --git a/src/state/swap/hooks.tsx b/src/state/swap/hooks.tsx
index 8c3c61fea1..b91da25691 100644
--- a/src/state/swap/hooks.tsx
+++ b/src/state/swap/hooks.tsx
@@ -1,17 +1,18 @@
 import { Trans } from '@lingui/macro'
 import { Currency, CurrencyAmount, Percent, TradeType } from '@uniswap/sdk-core'
 import useActiveWeb3React from 'hooks/useActiveWeb3React'
+import useAutoSlippageTolerance from 'hooks/useAutoSlippageTolerance'
 import { useBestTrade } from 'hooks/useBestTrade'
 import tryParseCurrencyAmount from 'lib/utils/tryParseCurrencyAmount'
 import { ParsedQs } from 'qs'
 import { ReactNode, useCallback, useEffect, useMemo, useState } from 'react'
 import { useAppDispatch, useAppSelector } from 'state/hooks'
 import { InterfaceTrade, TradeState } from 'state/routing/types'
+import { useUserSlippageToleranceWithDefault } from 'state/user/hooks'
 
 import { useCurrency } from '../../hooks/Tokens'
 import useENS from '../../hooks/useENS'
 import useParsedQueryString from '../../hooks/useParsedQueryString'
-import useSwapSlippageTolerance from '../../hooks/useSwapSlippageTolerance'
 import { isAddress } from '../../utils'
 import { AppState } from '../index'
 import { useCurrencyBalances } from '../wallet/hooks'
@@ -133,7 +134,10 @@ export function useDerivedSwapInfo(): {
     [inputCurrency, outputCurrency]
   )
 
-  const allowedSlippage = useSwapSlippageTolerance(trade.trade ?? undefined)
+  // allowed slippage is either auto slippage, or custom user defined slippage if auto slippage disabled
+  const autoSlippageTolerance = useAutoSlippageTolerance(trade.trade)
+  const allowedSlippage = useUserSlippageToleranceWithDefault(autoSlippageTolerance)
+
   const inputError = useMemo(() => {
     let inputError: ReactNode | undefined