> For the complete documentation index, see [llms.txt](https://docs.world.inc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.world.inc/tl-dr-unique-features/cross-venue-arbitrage.md). # Cross Venue Arbitrage ## Funding Rate Arbitrage World applies natural *downward* pressure on funding rates due to its ability to arbitrage lending and perps markets. When this arbitrage happens, rates are pushed towards each other, which typically makes lending rates higher than other venues and funding rates lower. This process is described in [The Capital Sink](/tl-dr-unique-features/the-capital-sink.md). This mechanic opens up a trading opportunity for arbitrage traders. If you open one perp on World and another perp on another exchange in the opposite direction, you will make the in difference rates as profit. Typically, the challenge with funding rate arbitrage is predicting the **duration** of the rate difference. Because there is no other exchange with a similar risk engine, especially across DEXs, this difference should in theory persist longer on World than other exchanges. ## HFT Trades on World are expected to be processed at \~10ms intervals. The consequence is that unlike DEXs with slower block times, latency sensitive software gives traders a unique advantage on World. We suggest reading [Broken mention](broken://pages/KNzqDWn9HvdgWYGD1wGq) if you are able to provide market making services. World offers a CEX-like API. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.world.inc/tl-dr-unique-features/cross-venue-arbitrage.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.