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and Optimization
Flashloan bots use Machine Learning algorithms to optimize its functions. Pre-de ned rulesets that take advantages of arbitrage opportunities are used to maximize the user's portfolio return. Moreover, the bots run on automated code to review multiple data points quickly to outmaneuver the market.
6. Risk Management in Flash Loans
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As the speed of trading accelerates, so does the potential risk. To minimize the associated risks, Flash Loan bots come with built-in risk management systems that allow users to adjust settings such as the maximum acceptable losses. This ensures that the user is always able to control their capital while taking advantage of the speed offered by Flash Loans.