Recently, I have been monitoring the spot and perpetual contract markets of $TRUTH and discovered a potential arbitrage opportunity.

The spot price is pegged at 0.01 USDT, while the perpetual contract is quoted at about 0.00992 USDT, with a spread of approximately 0.8%. More interestingly, the funding rate is currently negative (around -0.05%/hour), which means long contract holders can receive funding fee compensation.

Theoretically, the strategy is straightforward: go long on the perpetual contract while shorting the equivalent amount of spot. If the spread converges within an hour, the gross profit can reach 0.8%. But reality is always more complicated.

The real costs come from—bilateral trading fees eating up about 0.2%, plus slippage losses, which immediately reduce net profit to below 0.5%. Even more disheartening, TRUTH's trading volume has recently plummeted sharply, with a decline of 98.7%, and liquidity has become very poor.

This introduces two key risks: first, the spread continues to widen, leading to forced liquidation on one side; second, there are simply not enough counterparties for the spot, making it impossible to close positions smoothly. After weighing the options, I have decided to stay on the sidelines for now. The profit margin is too small, and the risks are too high to gamble. I will continue to review previous losses and prioritize prudence.