The Defiant says a quoted crypto arbitrage spread should not be treated as net profit. Using a matched 1 ETH example, the article shows how trading fees reduce the apparent gap between buy and sell prices once a trade is actually executed. What looks profitable on screen can narrow quickly after costs are applied.
The piece also looks at prefunding, a common tactic in which traders keep capital parked in advance across venues or locations to avoid waiting for transfers. That setup may cut execution delays, but it does not remove risk. Instead, according to the article, it shifts transfer risk into the later task of rebalancing funds.
The main point is straightforward: evaluating an arbitrage trade requires more than comparing quoted prices. Fees matter, and so does the operational risk that remains after capital is prepositioned. In that framework, the visible spread is only a starting point, not the final profit figure.
A quoted crypto arbitrage spread is not the same as net profit, according to an analysis published by The Defiant.
The article uses a matched 1 ETH example to show how fees eat into an apparent price gap. Even when buy and sell quotes suggest a spread, part of that difference disappears once execution costs are included. In other words, the spread shown on screen should not be read as the amount a trader will actually keep.
The piece also examines prefunding, where traders place capital in advance across different venues or locations to avoid the delay of moving assets during the trade. That can reduce transfer wait times, but it does not eliminate risk.
Instead, The Defiant says, prefunding shifts the risk from the transfer step to the later process of rebalancing. The article’s core argument is that any assessment of a crypto arbitrage trade has to account for both fees and the risk embedded in rebalancing, rather than relying only on the quoted spread.
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