Modern arbitrage is no longer about spotting random price gaps. It’s about execution under constantly changing market conditions. In HETHA.IO, every opportunity is formalized as an arbitrage chain — a precisely defined sequence of trades that must work together in real time.
A chain is not a signal or a suggestion. It’s a concrete execution path that either works under current market conditions or gets discarded.
What an Arbitrage Chain Is
An arbitrage chain is a sequence of exchange–pair nodes written in a strict format, for example:
bfx:btc/usd-bfx:eth/usd-bnc:eth/btc
The chain starts in BTC. On the first exchange, BTC is converted into USD. Then, on the same exchange, USD is converted into ETH. On another exchange, ETH is converted back into BTC.
Each node represents a specific trading pair on a specific exchange. Together, they describe exactly how capital would move if the chain were executed.
Base Currency
Every chain is calculated in a base currency — either USD (USDT) or BTC.
To make profitability comparable, HETHA always starts with a virtual amount of 100 units in the base currency. This amount is passed through each node in the chain. If the chain returns 100.06 USDT, the nominal profit is 0.06%. Fees are already included in this result.
This method keeps profit calculation consistent across exchanges and chains.
Chain Depth
HETHA works with depth-2 and depth-3 chains.
Depth-2 chains are the simplest form: buy on one exchange, sell on another, same currency in and out. They are fast and usually the most reliable.
Depth-3 chains introduce an intermediate conversion. This can increase potential profit, but also makes timing more sensitive and increases execution risk.
Lite vs Full Chains
Chains can be calculated using two pricing models:
Lite chains use the best bid and ask prices. They are extremely fast, but reflect only the smallest available volume.
Full chains use weighted average prices based on a fixed volume (currently $5,000). This makes them more stable and better suited for larger trades.
Both models are recalculated continuously as order books update.
Why Most Chains Are Rejected
The majority of generated chains never reach execution. Before that, they are filtered based on several criteria:
- profit below threshold
- generation time above one second
- abnormal or suspicious profit values
- price deviation from the live order book
- exchange connectivity or latency issues
This filtering step is critical. It prevents stale or unrealistic opportunities from entering the execution stage.
Generation Time: Why Speed Matters
Each chain has a generation time — the delay between the last market update involved in the chain and the moment the chain is finalized. In fast markets, even a one-second delay can invalidate an opportunity. That’s why chains with generation time above the configured limit are usually discarded.
GPU Recalculation
After initial filtering, market updates are sent to the calculation server, where a GPU recalculates a huge number of chains in parallel. Only a very small fraction remains profitable after this step. These are the chains that can realistically be executed under current conditions.
Forced Chains and Balance Management
Over time, arbitrage naturally separates assets across exchanges. To counter this, HETHA.IO supports forced chains. Their goal is not profit, but capital redistribution — moving funds back where they are needed so normal arbitrage can continue
Why This Matters
By treating arbitrage opportunities as structured chains instead of ad-hoc signals, HETHA.IO turns arbitrage into an engineered process. Chains make arbitrage measurable, filterable and scalable And most importantly — executable under real market constraints.