Directional risk at zero.
The spread does the work.
Znatok runs a proprietary arbitrage engine between perpetual futures and DEX spot: two offsetting legs, zero net exposure. Funding and basis do the work — not market direction.
What we build Get in touchIllustrative simulation — not live market data
Product
One engine, two legs, zero direction
Our core product is a fully automated trading system that simultaneously opens a short leg on a perpetual-futures market and a long leg on a decentralized spot market (or vice versa). The pair is sized to be delta-neutral from the first fill: whatever the market does, the two legs offset each other. Profit comes from the structural differences between venues — perpetual funding payments and price basis — not from market direction.
How it works
From opportunity scan to a balanced book
Opportunity scoring
The engine continuously scans funding rates, basis and liquidity across venues, normalizing different funding intervals to comparable APR and scoring each pair by expected payback vs. round-trip fees and historical stability.
Pre-flight validation
Before any order is sent, both venues are health-checked: order-book depth, API reachability, margin and balance sufficiency. If either side fails, the trade never starts.
Paired execution
Both legs are opened in a tightly coordinated sequence with slippage limits on each side. Position state is persisted atomically, so a restart never loses track of an open pair.
Managed lifecycle
While the pair is open, funding accrues and both legs are monitored in real time. Exits are executed incrementally — the hedge is reduced in matched slices so the book stays balanced at every step.
In action
What one cycle looks like
Replay of a typical engine cycle, values illustrative.
Engine
Safety mechanisms we engineered in
Running delta-neutral pairs unattended across independent venues is mostly a reliability problem. These are the mechanisms our engine uses to keep the book balanced when networks fail, APIs stall, or one leg fills and the other doesn't.
Incremental hedged exits
Positions are never closed one leg at a time. The engine unwinds both legs in small matched increments, so net exposure stays near zero throughout the entire exit — even for large positions in thin books.
Naked-leg protection
If one leg fills and the counter-leg fails, the engine detects the unhedged exposure immediately, records it in a persistent store and raises an operator alert — it is treated as an incident, never ignored.
Order-book health gating
Every execution step re-validates live book depth and spread on both venues. A degraded or stale book on either side pauses the sequence instead of pushing orders into bad liquidity.
Position reconciliation
Local state is continuously reconciled against exchange-reported positions. Any divergence — a missed fill, an external liquidation, a venue outage — is flagged before it can compound.
Funding-aware pair selection
Venues publish funding on different intervals and conventions. Our scoring layer normalizes them to a common APR, weights by historical sign-stability, and only trades pairs where fees are earned back within a strict payback window.
Kill-switch & alerting
A global kill-switch can flatten all positions across all venues in one command, with per-venue error isolation. Operators receive real-time alerts for every anomaly, on every channel, around the clock.
Connectivity
Venues & integrations we run on today
The engine is venue-agnostic by design — each integration is an adapter over a common execution core. Current production connectivity:
Perpetual-futures venues
On-chain perpetual order books where the short leg is placed and funding is collected. Each adapter handles the venue's own funding interval, margin model and order semantics.
Spot routing & aggregation
The spot leg is executed through aggregator routing — best-route execution across AMM liquidity with strict slippage limits on every fill.
Why it matters
Built for exchanges, not against them
We add liquidity and volume
Arbitrage flow is two-sided and non-toxic: we take both sides of structural imbalances, tighten cross-venue pricing, and generate consistent taker/maker volume without directional pressure on the market.
We are heavy, careful API users
Our systems rely on market-data streams, order placement and account endpoints around the clock. We engineer for exchange-friendly behavior: honest rate-limit budgeting, exponential backoff, and no request patterns that hammer infrastructure.
Let's talk
For exchange partnerships, API-limit inquiries, integrations or general questions.
bagzikus91@gmail.com