> For the complete documentation index, see [llms.txt](https://eigenphi-1.gitbook.io/classroom/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://eigenphi-1.gitbook.io/classroom/eigenphis-methodologies/how-eigenphi-identifies-mev/recognizing-atomic-arbitrage-mev-transactions.md).

# Recognizing Atomic Arbitrage MEV Transactions

Since transactions can be highly complex and involve infinite unknown patterns, relying solely on specific transaction pattern matching is inadequate to identify new MEV patterns. To detect Arbitrage in transactions, we need a universal abstraction for transactions.To achieve this, we have established the following principles for recognition.

1. We define a transaction as a collection of asset transfers.
2. Then, we evaluate the outcomes of these transfers using a set of rules to determine if an MEV has occurred.
3. We break down a transaction into Transfers and Trades.
4. Our algorithm merges Transfers to form a Transfer Table.
5. Next, we use the Transfer Table to merge the rows with the same address and generate a Combined Transfer Table.

<figure><img src="/files/Z2jdV0Xbrc6ppAW6cxnA" alt=""><figcaption><p>Principles for Recognition</p></figcaption></figure>

Our rule of thumb is: if the token balance of the nearest point to the "from" or "to" address of the transaction within a **strongly connected component** is positive, we regard this transaction as Arbitrage.

To help you better understand it, next, we will present a detailed process and an example to illustrate our algorithm based on the **Token Flow** graph generated in our **EigenTx** tool.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://eigenphi-1.gitbook.io/classroom/eigenphis-methodologies/how-eigenphi-identifies-mev/recognizing-atomic-arbitrage-mev-transactions.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.