> For the complete documentation index, see [llms.txt](https://docs.axis.to/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.axis.to/susdx-the-rewards-vault/how-axis-earns-yield/trading-strategies/centralized-arbitrage.md). # Centralized-Venue Execution Centralized venues can provide spot, perpetual, FX, financing, and block-liquidity execution for the four trading-engine categories. A venue is an execution environment, not a separate strategy category. ## Spot and derivative execution A strategy can pair a spot asset with a derivative while reducing broad directional exposure. Funding rate arbitrage seeks periodic funding payments; basis trading seeks a price difference between related instruments. They are distinct return drivers even when the same spot and derivative instruments are involved. The hedge does not remove basis expansion, liquidation or margin pressure, funding changes, partial fills, venue default, restricted withdrawals, or hedge mismatch. ## Funding and financing Perpetuals, lending markets, and financing instruments can carry different rates. A strategy can use them when the expected return exceeds execution costs and the risk budget. Rates can reverse, borrow can be recalled, collateral terms can change, and liquidity or counterparties can fail. A quoted rate difference is therefore not a locked return. ## Cross-currency execution Price differences can arise across currency denominations. For example, a structure can buy BTC in USD and sell BTC in TRY where a premium exists. Pairing or converting the currency exposure seeks to isolate the intended spread. Residual risks include FX hedge mismatch, settlement timing, capital controls, local-market liquidity, and banking or counterparty disruption. ## What determines the result Realized results depend on fill quality, fees, funding, borrow availability, collateral, margin, and the ability to close both legs. Read [Delta Neutrality](/susdx-the-rewards-vault/how-axis-earns-yield/trading-strategies/delta-neutrality.md) for the hedge boundary and [Venue & Counterparty Risk](/risk/venue-counterparty-risk.md) for venue controls. --- # 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.axis.to/susdx-the-rewards-vault/how-axis-earns-yield/trading-strategies/centralized-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.