Mimicry Docs
Mimicry.orgLaunch App
  • Whitepaper
    • πŸ‘¨β€πŸ«Protocol Overview
    • βš™οΈCore Mechanics
      • 🎲True Odds
      • πŸ’ΈValue Transfer Events
    • 🀹Advanced Features
      • 🎚️Leverage
      • ⏰Automations
        • Automated Stop-Loss
        • Automated Take-Profit
        • Automated Swap-Sides
    • πŸ§‘β€πŸ€β€πŸ§‘Players & Participants
      • πŸŽ₯Directors (Market Sponsors)
      • 🎭Actors (Traders)
      • 🎬Producers (Liquidity Providers)
      • βš–οΈBalancers (Keepers)
      • πŸ‘·Crew (Team)
    • πŸ“ŒFees
    • πŸͺ™Tokenomics
      • πŸ’»In-App Use Cases
      • πŸ’°Rewards
      • πŸ›οΈGovernance
      • πŸ“ŠDistribution
      • πŸ“ˆVesting
    • πŸ‘¨β€πŸ’»Contract Architecture
    • ⚠️Risks & Mitigations
      • Price Manipulation Risk
      • Data Feed Downtime Risk
      • Centralization Risk
      • Smart Contract Risks
      • Macroeconomic Risk
      • Skew-Change Risk
      • Leverage Risk
      • Liquidation Risk
      • Arbitrage Risk
      • Market Abandonment Risk
      • Balancer Shortage Risk
    • πŸ—£οΈNotable Vocabulary
    • 🀝Partner Integrations
    • πŸ—“οΈRoadmap
  • For Devs
    • πŸ“œContracts & Wallets
      • Contracts Overview
      • Contracts Reference
      • Wallets Reference
    • πŸ’ΎSDK
  • FOR COMMUNITY
    • πŸ”—Official Links
    • 🎨Brand Assets
    • πŸŽͺMarkets
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  1. Whitepaper
  2. Risks & Mitigations

Arbitrage Risk

A sophisticated Actor may run their own infrastructure to calculate a Pantomime’s reference-price feed, such as the market capitalization of Bored Ape Yacht Club, and modify their positions when they believe there is extractable value available between the last on-chain reference price and the current reference-price. We believe arbitrage of this nature is a healthy and efficient market dynamic, and one that will be mitigated organically as more and more players race against each other to capture alpha. We will further mitigate this risk by publishing robust Node and Python developer SDKs and well-documented code examples that teach novice software engineers how to easily interact with the Mimicry smart contracts.

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Last updated 2 years ago

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