I. Introduction
(1) Definition of Cryptocurrency Risk-Free Arbitrage
Cryptocurrency risk-free arbitrage is an investment strategy that seeks to exploit price differences and funding fees in the cryptocurrency market to achieve low- or risk-free returns. This strategy involves finding and exploiting price differences between different markets, exchanges, or trading pairs, while simultaneously buying and selling the same or equal value assets to reduce risk and obtain stable returns. In perpetual contract trading, the funding fee is a fee that balances the power of long and short positions, helping to keep the perpetual contract price close to the spot market price. By observing changes in funding rates, investors can determine the balance of market forces and discover arbitrage opportunities accordingly.