NFT Liquidity Capture Fund I

Ethereum Fund Only

NFT Offer Flow Arbitrage Fund

The NFT Liquidity Capture Fund is Arbitra’s second publicly available investment product, a blockchain-native strategy designed to extract short-term value from the rapidly evolving NFT marketplace ecosystem.

This fund allocates investor capital into an automated system that monitors real-time bid liquidity across leading NFT platforms, placing and rotating bids to capture pricing inefficiencies in a fully programmatic, rules-based manner.

Built to operate continuously and with minimal market exposure, the strategy is designed to produce consistent returns by participating in opportunities with tight risk controls Positioned as a low-volatility, high-turnover strategy, the fund provides exposure to an emerging digital asset niche without relying on speculative appreciation or long-term price trends.

Like all Arbitra strategies, the NFT Liquidity Capture Fund is fully on-chain, non-custodial, and investor-aligned offering transparency, instant access, and real-time performance visibility through blockchain-native infrastructure.

As a follow-up to the successful Blur Lending Pool, this strategy continues Arbitra’s mission to unlock institutional-grade investment opportunities in the NFT space through algorithmic execution and market structure expertise.

Strategy Summary

The NFT Liquidity Capture Fund operates a fully automated bidding strategy that engages with NFT marketplaces in real time to identify and execute high-probability arbitrage opportunities.

The system continuously evaluates active offers across multiple platforms and strategically places bids that are designed to be accepted at a discount relative to prevailing market demand. Once acquired, assets are immediately resold into the highest available liquidity on another exchange, enabling the fund to profit from bid-ask spreads and pricing inefficiencies, all within a short time horizon.

The approach is entirely rules-based, with defined parameters for bid placement, risk exposure, and asset turnover. By maintaining strict controls on execution thresholds and rapidly adjusting to changing market conditions, the fund is able to minimize downside while preserving upside from recurring, small-margin trades.

This strategy does not rely on long-term price movements, rare trait speculation, or trend timing. Instead, it systematically targets predictable, repeatable opportunities rooted in how liquidity forms and rotates across the NFT landscape.

The result is a low-latency, capital-efficient model that generates alpha through market microstructure, not directional exposure, making it a compelling complement to traditional NFT investment approaches.

What Exchanges and Why?

The NFT Liquidity Capture Fund currently operates exclusively across Blur, OpenSea and Magic Eden. Three of the most active and structurally distinct NFT marketplaces in the ecosystem.

Blur

As the dominant venue for professional NFT trading, Blur offers deep liquidity, low fees, and highly competitive bidding mechanics. Its real-time order book and focus on collection-level offers make it ideal for fast execution and arbitrage-based strategies. Blur’s architecture also supports non-expiring bids and gas-efficient batch interactions, enabling precision control over exposure and bid positioning.

OpenSea

OpenSea remains the most broadly used NFT marketplace, particularly for retail and long-tail assets. Its support for granular bidding — including trait-level and token-specific offers — creates consistent pricing discrepancies relative to Blur. While OpenSea’s infrastructure is less optimized for high-frequency execution, its market depth and bid expiration mechanics present unique windows of opportunity that complement Blur’s dynamics.

Magic Eden

Magic Eden, originally known for its presence on Solana, has recently expanded its footprint on Ethereum, offering competitive bidding infrastructure and an emerging user base. While still growing relative to Blur and OpenSea, Magic Eden on Ethereum presents select inefficiencies — particularly in newer or lower-volume collections — that can occasionally be exploited through bid rotation and liquidity monitoring.

The fund selectively engages with Magic Eden’s Ethereum marketplace when the offer structure or platform-specific bid flow presents a compelling arbitrage opportunity. While not a primary execution venue, its inclusion adds incremental surface area for alpha without requiring additional cross-chain complexity.

Why Only Ethereum?

The NFT Liquidity Capture Fund currently operates exclusively on Ethereum — the most active, liquid, and structurally mature ecosystem for NFT trading.

Ethereum continues to host the highest-value collections, the deepest offer books, and the most competitive bidding environments, making it the most attractive chain for executing our strategy at scale. From a development and opportunity standpoint, Ethereum provided the clearest path to immediate profitability and real-time arbitrage execution.

While Ethereum remains the fund’s sole focus today, Arbitra is actively researching and prototyping similar systems for emerging ecosystems, including Solana, Bitcoin (Ordinals), Base, Polygon, ApeChain, Arbitrum, and Abstract. These deployments, if developed, will be launched as separate, chain-specific funds — allowing for tailored strategies, risk isolation, and investor choice.

This modular approach ensures that each fund remains focused, efficient, and aligned with the nuances of its underlying blockchain, while offering investors optional exposure across ecosystems as opportunities mature.

Risk Management

While the Blur Lending Pool is designed to deliver attractive yield, its core priority is capital preservation. Our strategy is structured around strict risk controls, ensuring that lending activity remains low-volatility, transparent, and algorithmically managed at all times.

Fund Security & Safety

Arbitra prioritizes the security of investor capital at every level of system architecture. Once deployed to a dedicated server, all private keys used for signing transactions will be securely stored and managed using AWS Secrets Manager, an enterprise-grade solution designed to prevent unauthorized access and ensure cryptographic integrity. The Blur Lending Pool operates through a fresh, isolated wallet with no prior transaction history or external connections, other than its integration with Blur.io. This wallet is used exclusively for executing loan offers, reducing the risk of cross-platform exposure and minimizing potential attack vectors. These safeguards form part of a broader commitment to operational security, risk mitigation, and investor trust.

Performance & Backtesting

The NFT Liquidity Capture Fund I, has been tested in live Ethereum market conditions with real capital to validate both the strategy’s profitability and the robustness of its execution infrastructure. In its first deployment, the system consistently identified and captured pricing inefficiencies across top NFT marketplaces with minimal trades and strong capital efficiency.

Initial Deployment (2 Weeks)

• Starting Capital: 0.2 ETH

• Ending Capital: 0.3042 ETH

• Net ROI: 52.1%

• Annualized Return (APY): ~1,355%

• Trades Executed: 5

• Trade Success Rate: 100%

• Idle Capital Time: > 48 hours (due to upgrades and maintenance)

Key Observations

• All trades were executed on-chain and are publicly verifiable: OpenSea Activity

• Despite extended downtime from upgrades and maintenance, the system generated strong returns in just five trades.

Interpretation

This live test confirms the fund’s ability to deliver outsized, risk-managed returns by systematically arbitraging NFT liquidity across top Ethereum marketplaces. Even with more than 48 hours of capital downtime, the test demonstrated strong capital efficiency and the scalability potential of the strategy as additional capital is deployed.

With further optimization and deeper liquidity access, NFT Liquidity Capture Fund I is well-positioned to become a flagship strategy in the broader Arbitra Technologies lineup, combining transparency, efficiency, and high performance.