Recently, I kept an eye on LIGHT's market movements and found a significant price difference between spot and quarterly contracts—about 3.2%. At the same time, the funding rate is still in the negative zone (-0.12%/hour). Under these conditions, it's actually possible to execute a hedge arbitrage.

The logic is simple: buy spot and short the contract simultaneously. The 3.2% price gap itself acts as a safety margin. If the funding rate remains negative, you can earn approximately 2.88% over 24 hours. Theoretically, after deducting bilateral fees (around 0.3%) and funding costs, the net profit over 24 hours could reach about 5.7%, which seems to carry a low risk.

But there are also significant issues. LIGHT recently experienced a -64% crash, and liquidity has noticeably shrunk. The 24-hour trading volume is still declining. This means the slippage risk on the spot side is quite high, and the execution costs for hedging could be much higher than expected. Plus, volatility remains relatively high, and in extreme market conditions, exchange system risks must also be considered.

So, the current approach is to continue observing. Wait until the spread stabilizes above 4%, and the RSI on the 15-minute K-line returns above 50. Only then would entering the market be more prudent. Arbitrage may seem low-risk, but it heavily relies on precise execution and liquidity support. A small mistake can wipe out the entire profit.