XEMM Executor

The XEMM Executor (Cross-Exchange Market Making) captures arbitrage by simultaneously placing orders on different exchanges, exploiting price discrepancies.

Overview

Property	Value
Position Type	Spot
keep_position	Configurable
Use Cases	Cross-exchange arbitrage, market making, spread capture

Configuration

from hummingbot.strategy_v2.executors.xemm_executor.data_types import XEMMExecutorConfig

config = XEMMExecutorConfig(
    controller_id="my-agent",
    buying_market=ExchangePair(
        exchange="binance",
        trading_pair="ETH-USDT",
    ),
    selling_market=ExchangePair(
        exchange="kucoin",
        trading_pair="ETH-USDT",
    ),
    maker_side="buy",              # Which side to make
    order_amount=Decimal("0.5"),   # Amount in base asset
    min_profitability=Decimal("0.002"),  # 0.2% minimum
)

Parameters

Parameter	Description
`buying_market`	Exchange and pair for buy side
`selling_market`	Exchange and pair for sell side
`maker_side`	Which side places maker orders (`buy` or `sell`)
`order_amount`	Order size in base asset
`min_profitability`	Minimum profit threshold after fees

How It Works

Price Monitoring: Watches prices on both exchanges
Spread Calculation: Computes potential profit including fees
Maker Order: Places limit order on maker side
Taker Order: When maker fills, immediately takes on other side
Profit Capture: Locks in spread as profit

Arbitrage Validation

The executor validates that:

Trading pairs are interchangeable (same tokens)
Sufficient balance on both exchanges
Spread exceeds minimum profitability threshold
Transaction costs are accounted for

Example: ETH Arbitrage

eth_xemm = XEMMExecutorConfig(
    controller_id="eth-arb",
    buying_market=ExchangePair(
        exchange="binance",
        trading_pair="ETH-USDT",
    ),
    selling_market=ExchangePair(
        exchange="okx",
        trading_pair="ETH-USDT",
    ),
    maker_side="buy",
    order_amount=Decimal("1.0"),
    min_profitability=Decimal("0.003"),  # 0.3% min profit
)

Example: Stablecoin Spread

stable_xemm = XEMMExecutorConfig(
    controller_id="stable-spread",
    buying_market=ExchangePair(
        exchange="kraken",
        trading_pair="USDC-USD",
    ),
    selling_market=ExchangePair(
        exchange="coinbase",
        trading_pair="USDC-USD",
    ),
    maker_side="sell",
    order_amount=Decimal("10000"),
    min_profitability=Decimal("0.0005"),  # 0.05% min
)

Profitability Calculation

Gross Spread = Sell Price - Buy Price
Net Profit = Gross Spread - Buy Fee - Sell Fee - Transfer Costs

Execute if: Net Profit / Trade Value > min_profitability

Inventory Management

The executor creates positions on both exchanges:

Exchange	Position
Buying Exchange	Long base asset
Selling Exchange	Short base asset (or sold)

Total inventory risk depends on keep_position setting:

true: Positions remain for future management
false: Inventory rebalanced or hedged

Condor

Getting Started

Trading Agents

Executors

Routines

Bots

Other Condor Features

Overview

Configuration

Parameters

How It Works

Arbitrage Validation

Example: ETH Arbitrage

Example: Stablecoin Spread

Profitability Calculation

Inventory Management

​Overview

​Configuration

​Parameters

​How It Works

​Arbitrage Validation

​Example: ETH Arbitrage

​Example: Stablecoin Spread

​Profitability Calculation

​Inventory Management

Overview

Configuration

Parameters

How It Works

Arbitrage Validation

Example: ETH Arbitrage

Example: Stablecoin Spread

Profitability Calculation

Inventory Management