I have friends who trade forex and a random flash crash not only lost all of their funds, they actually ended up owing money because the price crashed through the stop loss and more as the trading platform couldn’t get them out of their position (I guess due to the sudden speed of the crash and computer malfunction).Is that something that could happen on the Arb bot?Thank you
Answer
The worse case scenario for Arbitrage Bot is continous very high negative funding in several weeks or even months. But ofcourse this is never happened before for funding fee having straight high negative for a long period, market always trying to stabilize it somehow. But you need still have an idea of how the funding fee will perform in the future, try to predict it to prevent big losses, usually small cap token having a very high volatility of funding fee. Another worse case scenario is exchange shutdown, which is very unlikely to happen , the futures market is coming from Binance and Huobi right now so you have idea how safe it is.
