#solana #arb In a basic, cyclic arbitrage you end up with same currency you started with but swapped across multiple liquidity pools usually on different defi exchanges. For example, using an Orca liquidity pool for [SOL/USDC](https://solscan.io/account/HJPjoWUrhoZzkNfRpHuieeFk9WcZWjwy6PBjZ81ngndJ) we notice the price of: $ 1 SOL = 34.11 USDC $ On a second exchange using a Raydium liquidity pool for [SOL/USDC](https://solscan.io/account/58oQChx4yWmvKdwLLZzBi4ChoCc2fqCUWBkwMihLYQo2) we notice the price of: $ 1 SOL = 34.29 USDC $ If we were to buy 1000 SOL on Orca for $34,110 and sell 1000 SOL on Raydium for $34,290 then in theory, profit is: $ 34,290 - 34,110 = 180 $ ## Limitations and Risks There are a number of limitations and risks that impact arbitrage trades: - Know Your Customer (KYC) regulations - Exchanges fees on trades - Liquidity and ability to fill large volume trades - Deposit and withdrawl limits on exchanges - Slippage on trades - Slow transactions - Failed transactions - Other arbitrageurs