Can an Arbitrageur Lose Money Using a Flash Loan?

Theoretically, a properly executed flash loan arbitrage transaction should not result in a loss because the entire operation is calculated and submitted as an atomic transaction. If the calculated profit is negative (due to high gas fees or a missed opportunity), the transaction will fail or be reverted before execution, meaning the loan is not taken and no loss is incurred.

However, an improperly coded bot could potentially incur a loss if not designed to revert on negative profit.