How a Crypto Quant Firm Shook Off the Bear Market – And FTX Exposure

The principal threat to Pythagoras’ Arbitrage Fund is counterparty risk. In order to make instant trades, the firm has to keep money on exchanges. Pythagoras diversifies its assets across at least a dozen exchanges with no more than 10% of its funds with any one brokerage, Dong said. Prior to the FTX collapse, Pythagoras did have 10% of its assets with that exchange.