Since its launch, the Spot-Futures Arbitrage bot has been welcomed by many users and helped our users make more than 1 Million of the arbitrage profit. Its risk is relatively low, but its income is relatively high, reaching an annual rate of 15%-50%. However, any trading strategy has risks, and Spot-Futures Arbitrage is no exception. When extreme market conditions occur, or when Binance’s currency security contract system and spot system down, the principal of your investment may be lost.
Therefore, we decided to charge for the spot-futures arbitrage bot and make this service more sustainable.
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Specific Rules
- Picol charges 10% of the profit generated by the spot-futures arbitrage bot.
- When the user closes the Spot-Futures Arbitrage bot or reduces the position, the arbitrage profit plus floating profit and loss will be automatically calculated. The fee will be deducted.
What are Picol Arbitrage SAFU funds?
- The arbitrage SAFU funds will be used as compensation in the Black Swan incident while using Picol spot-futures arbitrage bot.
- All coins on Picol share a common insurance fund, with the exception of BTC and ETH, that share another insurance fund.
- Picol will release another landing page for you to check the balance of each fund.
Compensation Rule
Users can apply for compensation when the following situations occur:
- When the spot or contract system of Binance or Huobi aggregated by Picol fails, resulting in an inability to trade and transfer, and finally resulting in loss of the principal of the user (i.e., when the total profit is negative)
- When the spot or contract system of Binance or Huobi aggregated by Picol fails, resulting in an inability to trade and transfer money, and finally resulting in the user being unable to shut down the Spot-Futures Arbitrage bot and generating a negative funding fee
- When the spot price rises rapidly, resulting in the liquidation of the contract position, and the spot price falls rapidly at this time, resulting in the loss of principal before the spot can be sold
- When the spot is automatically reduced due to the rapid decline of the spot price, the spot price continues to fall at this time, and the spot has not yet had time to sell, resulting in a loss of principal
Other Rules
- The accumulated compensation amount obtained by the user shall not exceed the fee paid by the user
- When the SAFU fund is used up and the newly added SAFU fund within 30 days after applying for compensation cannot cover the compensation amount, the user will not be able to get the full compensation
- If the user’s funds cannot be withdrawn due to Binance or Huobi’s reasons, this won’t be covered by the Arbitrage insurance fund.
Benefits for Beginners
The first 10,000 USDT of Spot-Futures Arbitrage bot is deductible, and users can also choose to actively join the current arbitrage risk guarantee fund. This 10,000 USDT is the cumulative amount. This amount will still be accumulated if the bot is closed or the position is reduced.