Arbitrage

Two kinds of arbitrage

Quote arbitrage trades a token against USDC or SOL when the quote shows a profit after fees. Price arbitrage watches several liquidity pools of one token and trades when their prices drift apart by more than your USD threshold, aiming to equalize the price across pools.

Pools can pair the same token with different currencies (for example SOL and USDC), so pool prices move as those currencies move. The formula stays the same, but its inputs change constantly, so every check recalculates each pool's USD price and the exact token amount needed to bring the pools level. No AI is needed for the math; AI observes and reports.

Every arbitrage trade is linked to its own Auto Trading (HOT) wallet created by ASN, so it is automatic. Once activated, Price arbitrage trades live: it buys through the cheapest pool and sells into the most expensive one, re-quoting right before sending. It skips a trade if the round trip would lose more than your fee buffer. Equalization is a goal, not a guarantee.

Before activation

Arbitrage trades use dedicated trading wallets, not your saved watch-only wallet keys. Trade wallet keys are held encrypted by the service so an activated trade can sign without asking you to approve each trade. This is custodial access to the trade wallet only.

Live readiness still requires approved-pool enforcement, end-to-end spending and safety checks, and verification that the Supabase timer reaches the deployed engine. Preview trades do not trade. A guide or the Pre-Alpha acknowledgement does not complete these checks.

Review a trade setup

1. 1Enter the token's Solana address and pick its liquidity pools, or add pool addresses one by one.
2. 2Choose the chain (Solana for now). For Price arbitrage, pick at least 2 pools and set the dollar difference that activates the trade — the trade amount is calculated.
3. 3For Quote arbitrage, review trade size, profit threshold, slippage, hourly execution limits, and daily loss limits.
4. 4Create the dedicated trade wallet and use its protected backup option. Keep the backup and its password private.
5. 5When ready for controlled testing, approve activation once and monitor the trade's history.

Automatic execution and its risks

Manual swaps require wallet approval per transaction. Activated arbitrage trades are intended to execute automatically after the initial authorization. The configured Supabase timer checks every minute; free public services do not provide millisecond execution guarantees.

The current round trip uses two separate swaps. The second leg may fail or prices may change, leaving a token position or a loss. Arbitrage is not guaranteed profit or guaranteed price stabilization. Intended pools still need enforcement against actual execution routes.

Pause and investigate

Use the trade pause controls or Pause all to stop further attempts. A pause cannot reverse a transaction already sent. Failure, partial-trade, and loss protections can auto-pause a trade; inspect its history before considering reactivation.

A timer being configured is not proof of a successful trade. Deployment, provider availability, confirmation, and signed-in small-fund testing remain separate checks.