{"id":76,"date":"2026-01-23T16:35:31","date_gmt":"2026-01-23T16:35:31","guid":{"rendered":"https:\/\/hetha.io\/blog\/?p=76"},"modified":"2026-01-26T10:11:10","modified_gmt":"2026-01-26T10:11:10","slug":"how-arbitrage-chains-work-in-hetha-io","status":"publish","type":"post","link":"https:\/\/hetha.io\/blog\/how-arbitrage-chains-work-in-hetha-io\/","title":{"rendered":"How Arbitrage Chains Work in HETHA.IO"},"content":{"rendered":"\n

Modern arbitrage is no longer about spotting random price gaps. It\u2019s about execution under constantly changing market conditions. In HETHA.IO<\/a>, every opportunity is formalized as an arbitrage chain \u2014 a precisely defined sequence of trades that must work together in real time.<\/p>\n\n\n\n

A chain is not a signal or a suggestion. It\u2019s a concrete execution path that either works under current market conditions or gets discarded.<\/p>\n\n\n\n

What an Arbitrage Chain Is<\/strong><\/p>\n\n\n\n

An arbitrage chain is a sequence of exchange\u2013pair nodes written in a strict format, for example:<\/p>\n\n\n\n

bfx:btc\/usd-bfx:eth\/usd-bnc:eth\/btc<\/code><\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Each node represents a specific trading pair on a specific exchange. Together, they describe\u00a0exactly how capital would move if the chain were executed. <\/p>\n\n\n\n

Base Currency<\/strong><\/p>\n\n\n\n

Every chain is calculated in a\u00a0base currency\u00a0\u2014 either\u00a0USD (USDT) or\u00a0BTC.<\/p>\n\n\n\n

To make profitability comparable,\u00a0HETHA always starts with a\u00a0virtual amount of 100 units\u00a0in the base currency. This amount is passed through each node in the chain. If the chain returns\u00a0100.06 USDT, the nominal profit is\u00a00.06%. Fees are already included in this result.<\/p>\n\n\n\n

This method keeps profit calculation consistent across exchanges and chains.<\/p>\n\n\n\n

Chain Depth<\/strong><\/p>\n\n\n\n

HETHA works with\u00a0depth-2 and depth-3 chains.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Depth-3 chains introduce an intermediate conversion. This can increase potential profit, but also makes timing more sensitive and increases execution risk.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Lite vs Full Chains<\/strong><\/p>\n\n\n\n

Chains can be calculated using two pricing models:<\/p>\n\n\n\n

Lite chains use the best bid and ask prices. They are extremely fast, but reflect only the smallest available volume.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Both models are recalculated continuously as order books update.<\/p>\n\n\n\n

Why Most Chains Are Rejected<\/strong><\/p>\n\n\n\n

The majority of generated chains never reach execution. Before that, they are filtered based on several criteria:<\/p>\n\n\n\n

    \n
  1. profit below threshold<\/li>\n\n\n\n
  2. generation time above one second<\/li>\n\n\n\n
  3. abnormal or suspicious profit values<\/li>\n\n\n\n
  4. price deviation from the live order book<\/li>\n\n\n\n
  5. exchange connectivity or latency issues<\/li>\n<\/ol>\n\n\n\n

    This filtering step is critical. It prevents stale or unrealistic opportunities from entering the execution stage.<\/p>\n\n\n\n

    Generation Time: Why Speed Matters<\/strong><\/p>\n\n\n\n

    Each chain has a\u00a0generation time\u00a0\u2014 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\u2019s why chains with generation time above the configured limit are usually discarded.<\/p>\n\n\n\n

    GPU Recalculation<\/strong><\/p>\n\n\n\n

    After initial filtering, market updates are sent to the calculation server, where a\u00a0GPU 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.<\/p>\n\n\n\n

    Forced Chains and Balance Management<\/strong><\/p>\n\n\n\n

    Over time, arbitrage naturally separates assets across exchanges. To counter this, HETHA.IO<\/a>\u00a0supports\u00a0forced chains. Their goal is not profit, but\u00a0capital redistribution\u00a0\u2014 moving funds back where they are needed so normal arbitrage can continue<\/p>\n\n\n\n

    Why This Matters<\/strong><\/p>\n\n\n\n

    By treating arbitrage opportunities as structured chains instead of ad-hoc signals, HETHA.IO turns arbitrage into an\u00a0engineered process. Chains make arbitrage measurable, filterable and scalable And most importantly \u2014 executable under real market constraints.<\/p>\n\n\n\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

    Modern arbitrage is no longer about spotting random price gaps. It\u2019s about execution under constantly changing market conditions. In HETHA.IO, every […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-76","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/hetha.io\/blog\/wp-json\/wp\/v2\/posts\/76","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hetha.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hetha.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hetha.io\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hetha.io\/blog\/wp-json\/wp\/v2\/comments?post=76"}],"version-history":[{"count":1,"href":"https:\/\/hetha.io\/blog\/wp-json\/wp\/v2\/posts\/76\/revisions"}],"predecessor-version":[{"id":81,"href":"https:\/\/hetha.io\/blog\/wp-json\/wp\/v2\/posts\/76\/revisions\/81"}],"wp:attachment":[{"href":"https:\/\/hetha.io\/blog\/wp-json\/wp\/v2\/media?parent=76"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hetha.io\/blog\/wp-json\/wp\/v2\/categories?post=76"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hetha.io\/blog\/wp-json\/wp\/v2\/tags?post=76"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}