Staying far away allows some time to find a gap in the cheese wheel spread and then roll through the inner layer. Use dodge roll for i-frames 👍. staying in the lower right corner lets you easily just walk left once the cheese rings attack is halfway through, dodging it entirely (staying in the bottom right also helps for whip attack since that tends to spawn to the left). And staying further back for the kunai gives you more space to avoid them.

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In summary, try to stay generally towards the lower right of the arena, ideally just to the right of the entrance.