1.1 What is arbitrage?

Arbitrage is the practice of exploiting price differences for the same (or equivalent) asset across different markets.

Simple example:

• SOL is trading at 100.00 USDC on DEX A

• SOL is trading at 101.00 USDC on DEX B

In theory:

1. You buy 1 SOL on A at 100.00

2. You sell 1 SOL on B at 101.00

3. Gross spread = 1.00 USDC (≈ +1%)

Real-world arbitrage is just this, scaled and repeated:

• Multiple venues

• Multiple hops (e.g. SOL → USDC → RAY → SOL)

• Different fee structures and liquidity profiles

• Latency and competition

Capture OS doesn’t hold your funds or press the buttons for you (unless you’re using an execution layer like Capture Bot). The core engine’s job is:

Look at prices across venues → calculate the net spread after obvious costs → rank opportunities.

Everything else (whether you trade, how big you go, how you protect yourself) is execution logic.