How Arbitrage Works

What is Arbitrage?

Arbitrage is the practice of taking advantage of price differences in different markets. In prediction markets, if Market A prices an event at 45% and Market B prices it at 58%, you can buy both YES and NO positions across markets for a combined cost under 100%.

When the event resolves, one position pays $1. You lock in risk-free profit from the spread.

Example

Risk Analysis

Arbitrage opportunities have extremely low risk since you're simultaneously taking opposite positions. The main risks are:

• Execution risk: Markets moving before orders fill. We mitigate with instant execution.
• Platform risk: A platform failing to honor trades. We only partner with reputable markets.