Arbitrage is not risk-free
A cross-exchange spread may disappear before both legs fill. Orders can fill partially or fail; exchange balances may be unavailable when needed. Fees, spread, slippage, withdrawal charges, network congestion, transfer delays and subsequent inventory rebalancing can turn a positive displayed spread into a loss.
An analysis assuming inventory is already positioned on two venues does not model a buy-transfer-sell transaction. Tokens with similar names, wrapped assets and different quote currencies are not automatically interchangeable. Verify the instrument, settlement asset and network.
Funding and basis strategies
Delta-neutral describes an intended reduction in directional exposure, not protection from every source of loss. Funding can change sign, and a short position that receives funding now may pay later. Basis can widen; positions may become mismatched; collateral can fall in value; and one venue can fail while the other leg remains open.
Simple annualisation extends a short observation mathematically. It does not forecast future rates or include automatic reinvestment. Return on the derivative notional is different from return on all committed capital. Leverage, collateral requirements, borrowing costs and liquidation exposure must be considered separately.
Leverage, margin and liquidation
Leverage amplifies losses as well as gains. A simplified liquidation estimate may omit maintenance tiers, mark-price rules, funding debits, cross-margin offsets, portfolio-margin calculations, closing costs and automatic deleveraging. The exchange's rules and account state determine actual liquidation.
A stop order is not a guaranteed exit price. Thin markets, gaps, outages or order restrictions can prevent an intended hedge or exit. Do not treat a sizing calculation as an assessment of your personal capacity to bear losses.
Data quality and historical tests
Public APIs may throttle requests, restrict countries, change fields or return delayed observations. An exchange's latest trade, mark price, index and executable bid or ask serve different purposes. A comparison is meaningful only when the instruments, units and time windows are compatible.
A backtest is a historical simulation. Results depend on data coverage, execution assumptions, fees, slippage, parameter choices and the tested period. Overfitting, selection bias and missing market conditions can make a backtest appear stronger than a future strategy. A simulation is not a verified record of real trades.
Blockchain, stablecoins and DeFi
Network fee estimates can become obsolete before a transaction confirms. Confirmation times are variable and a transaction may be reorganised. Blockchain transactions may be irreversible. An address lookup shows published chain information, not verified identity or the complete holdings of a person.
Stablecoins can deviate from their reference price or face redemption restrictions. Smart contracts, bridges and oracles can fail or be exploited. Liquidity-pool loss models simplify pool mechanics and may exclude fees, incentives, concentrated-liquidity ranges or protocol-specific rules. Flash loans and liquidation strategies also involve technical, execution and transaction-cost risks.
Your decision and provider eligibility
Check the original source, contract specifications and current costs before making a decision. Confirm whether a service and instrument are available and permitted for you. Regulatory authorisation of a provider is not a guarantee of the value or liquidity of an asset, and protections vary by product and service.
If you need a recommendation tailored to your circumstances, seek an appropriately qualified and authorised professional. This disclosure explains concrete limitations; it does not waive mandatory rights or cure misleading information.
Session heatmaps and accumulation proxies
A heatmap records partial snapshots retrieved during this browser session. It cannot reconstruct orders placed and cancelled between observations. Persistent displayed liquidity does not establish that an order will remain, fill or belong to one trader.
Accumulation, distribution and pressure scores are proxies built from the disclosed data and formula. They do not confirm ownership, hidden inventory, intent, coordinated activity or a future price direction. A paused view contains earlier observations and is not an always-running monitoring service.