> For the complete documentation index, see [llms.txt](https://s0x.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://s0x.gitbook.io/docs/keeping-markets-in-line/off-chain-arbitrage.md).

# Off-chain arbitrage

$0X sits in a extremely unique arbitrage position

$0X represents assets by directly mirroring them on-chain, maintaining a 1-to-1 relationship with their off-chain counterparts through tapping into the underlying market. This grants $0X access to the liquidity of some of the world's largest markets. Whenever markets deviate from the desired alignment, $0X employs direct arbitrage with the off-chain market to realign them. This robust mechanism deters traders from attempting to front-run the arbitrage, thereby ensuring market integrity.

$0X occupies a highly unique position in the realm of arbitrage. Arbitrage trades are in high demand, and traders invest significant effort in creating complex models to execute them. However, $0X has the advantage of controlling access to these trades, turning it into a profit-making mechanism rather than a loss-making one. This approach fosters healthier markets and provides greater financial stability for $0X, ultimately benefiting its users. Moving forward, $0X intends to open up this arbitrage line to its liquidity and market-making partners to further accelerate the expansion of its markets.