> For the complete documentation index, see [llms.txt](https://rifts.gitbook.io/rifts-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rifts.gitbook.io/rifts-docs/revenue-types/trading-and-arbitrage.md).

# Trading & Arbitrage

#### Volatility farming by definition:

  Pools are designed to drift from their peg during market activity. When price discrepancies emerge:

* The protocol performs arbitrage for users, to restore parity.
* Every arbitrage action incurs a small protocol fee.
* The arbitrage engine becomes a yield-generation mechanism, not just a price stabilizer.

This is where Leveraged Volatility Farming (LVF) enters: protocols and advanced users can stack volatility exposure to earn amplified fees when price activity spikes.