Here’s an additional example. Most small exchanges actually rely on Binance for liquidity, using Binance’s VIP API. But sometimes, there’s a slight delay in the prices provided by the API. For instance, when Binance’s Bitcoin price drops from 120k to 115k, the API might not update the price on the small exchange immediately, so the small exchange’s price might still be stuck at 120k—or sometimes the delay is ridiculously long… This creates an arbitrage opportunity. Over the past couple of years, many studios have made a lot of money exploiting this. Some people say transaction fees eat into profits. That’s easy to solve—small exchanges usually offer super high rebates, like 95% or even 98%. In the end, small exchanges had to pull out their trump card: freezing your account and taking both your profits and principal. I won’t name which exchanges did this—it’s asking for trouble… Sharing this is just to remind everyone: never try to outsmart the referee.