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Arbitrum

Ticker
ARB
Category
Scaling network
Risk profile
Volatile

What it is

An optimistic rollup that executes transactions off the Ethereum main chain and posts the results back to it, so users pay Ethereum-level security costs only once per batch.

Why this risk level

  • Transactions are ordered by a sequencer and settled on Ethereum, so fees are far lower than transacting on Ethereum directly while the final record still lives there
  • Withdrawals back to Ethereum pass through a challenge window measured in days, during which a fraud proof can dispute the posted result — bridges that offer instant exits are third parties taking that risk for a fee
  • ARB is a governance token for the protocol's DAO; it is not the network's gas token and does not confer a share of sequencer revenue

A plain-English risk overview for education, not investment advice. Risk profiles describe the asset's own characteristics, not a price forecast — always do your own research before buying.

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