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Broken Sums Found
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Events with sum < $1.00
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Parent/child violations
Best Rebalancing
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📚 Theory & Risk Notes

Rebalancing Arbitrage

In a mutually exclusive event (e.g., "Who wins?"), exactly ONE outcome will resolve to $1.00. If you can buy ALL outcomes for less than $1.00 total, you lock in guaranteed profit.

Combinatorial Arbitrage

If event A is a superset of event B, then P(A) ≥ P(B). For example, "BTC > $90k" contains "BTC > $100k". If the child is priced higher than the parent, buy the cheap parent.

⚠ Risks

  • Rebalancing: Must execute ALL orders or NONE. Partial fills create naked exposure.
  • Liquidity: Low-liquidity markets may not fill at displayed prices.
  • Timing: Prices can move between detection and execution.