Arbitrage Opportunities in Fragmented Liquidity
Crypto is fragmented. Thousands of exchanges. Thousands of prices. Arbitrage is the act of exploiting these price differences.
Types of Arbitrage
- Spatial Arbitrage: BTC is $100k on Binance but $101k on Kraken. Buy on A, Sell on B.
- Risk: Transfer times. By the time you move funds, the gap might close.
2. Triangular Arbitrage: BTC -> ETH -> USDT -> BTC. Profiting from mispriced cross-rates within a single exchange (like Uniswap).
3. Funding Rate Arbitrage: Buying Spot (Long) and Shorting Futures (Short) to collect the funding fee.
The Bot Advantage
Humans cannot do this. The opportunities exist for milliseconds. Our High Frequency Bots monitor these spreads constantly.
Is it Risk Free?
No.
- Execution Risk: One leg fills, the other doesn't.
- Fee Risk: Trading fees + Gas fees > Profit.
Arbitrage is a volume game. You need significant capital to make the slivers of profit worthwhile.
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