Why Is the Arbitrage Trade Considered “Risk-Free” in the Context of AMM Price Synchronization?

Arbitrage trades are considered "risk-free" because the profit is locked in at the moment the trade is executed across two different markets (the AMM pool and an external exchange). The arbitrageur simultaneously buys the asset in the cheaper market and sells it in the more expensive market, locking in the price difference as profit.

There is no exposure to future price volatility, as the entire transaction is completed almost instantly.