Market and execution risk
The spread can disappear between detection and execution. Size at the best price may be cancelled or consumed by another participant.
- stale quotes and API latency;
- partial execution on one leg;
- slippage and insufficient depth;
- MEV and changing DEX pool state.
Transfers, venues, and infrastructure
A closed deposit, wrong network, blockchain delay, account limit, or venue outage can block the route and leave directional exposure.
Updated: 2026-07-18
Frequently asked questions
Can arbitrage risk be removed completely?
No. Traders can limit size, verify each route before execution, and define an exit plan.
Why can a very large spread be more dangerous?
It may indicate thin liquidity, blocked transfers, mismatched contracts, stale pricing, or venue problems.