# System Workflow

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## 1. Data Collection

✨ Collect real-time market data and on-chain transaction information.

✨ Aggregate data into structured formats for efficient AI analysis.

## 2. AI Analysis

✨ TensorFlow models analyze incoming data to detect arbitrage opportunities. Decision-making is modeled as a multi-armed bandit problem:

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&#x20;    where (a\_t) is the chosen action (trade),  (A) is the action space, and (Q(a, s\_t)) is the estimated reward.

## 3. Smart Contract Interaction

✨ Smart contracts receive trade instructions and verify conditions:

&#x20;  &#x20;

<figure><img src="https://512794657-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FiZbioJIuqF6ipSdOhR7O%2Fuploads%2FAgzpbgM8uhU7KxT3c48Q%2Fphoto_2024-12-18%2021.03.55.jpeg?alt=media&#x26;token=a16115d8-73ab-4135-825e-a68cc52c0a98" alt=""><figcaption></figcaption></figure>

✨ Atomicity ensures no partial execution.

✨ Contract maintains logs for transparency and compliance.

## 4. Feedback Loop

✨ Continuous learning through model updates based on market performance. Reinforcement learning algorithms update policy π:

&#x20;   &#x20;

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