Identify the Corresponding Positions
The strategy begins by looking at the related sides of a prediction market, such as YES and NO positions tied to the same event.
OxusTech presents an automated arbitrage approach that looks for pricing relationships between corresponding positions in prediction markets. The focus is on how the positions are priced, rather than trying to forecast which event outcome will be correct.
This example reproduces the pricing logic presented in the OxusTech material. It illustrates the strategy concept and does not guarantee that similar pricing gaps or outcomes will always be available.
The simplified logic presented by OxusTech begins with two corresponding positions in the same prediction market. The system looks at their combined price and compares it with the market's settlement structure.
The strategy begins by looking at the related sides of a prediction market, such as YES and NO positions tied to the same event.
The prices are evaluated together rather than as independent directional positions. The relationship between them is the relevant part of the arbitrage logic.
In the example presented by OxusTech, the two positions cost a combined $0.98. That figure is then compared with the $1.00 settlement structure.
When the combined price is below the corresponding settlement value, the difference illustrates the type of pricing gap the strategy is designed to identify.
The example does not depend on choosing YES as the expected winner or NO as the expected winner. It illustrates how the combined price of the corresponding positions can be compared with the way the market settles.
This example explains the pricing logic presented by OxusTech. Actual market prices change continuously, and a comparable gap may not remain available long enough to be executed. The example should therefore not be read as a guaranteed or fixed result.
In a directional position, the decision is centered on which event outcome is expected to occur. The arbitrage logic presented by OxusTech approaches the same market differently by focusing on the relationship between corresponding prices.
A directional position depends on a view about the event itself. The participant chooses one side because they expect that particular outcome to be correct when the market settles.
The strategy presented by OxusTech evaluates corresponding positions together. The relevant question becomes whether their combined price creates a usable relationship with the market's settlement structure.
In the simplified example used by OxusTech, the relevant relationship comes from buying corresponding YES and NO positions for a combined $0.98 against a $1.00 settlement structure. The logic therefore centers on the relationship between the prices rather than selecting the eventual winning side.
This distinction explains the strategy concept, but it does not eliminate execution, liquidity, market or platform risk. Pricing relationships can change quickly, and a detected opportunity may no longer be available when an order is processed.
The OxusTech presentation describes its strategy as identifying pricing gaps that may be relatively small on an individual operation. The model therefore places importance on structured execution and automation rather than on a single large market movement.
OxusTech presents 1.5%–2.5% as a reference range for the arbitrage margin associated with an operation. This figure describes the strategy-level pricing opportunity presented in the company material and should not be interpreted as a fixed result for every transaction.
Market prices, liquidity and execution conditions can change before or during the processing of an opportunity.
A pricing difference does not necessarily remain available. As participants and automated systems interact with the market, prices may adjust and the relationship can disappear.
Identifying a theoretical gap and completing the required execution are separate stages. The strategy therefore depends on the relevant conditions remaining available when the corresponding positions are processed.
These two ranges describe different figures in the OxusTech presentation. The stated 1.5%–2.5% range refers to the arbitrage margin per operation, while 0.3%–1.1% is presented separately as a daily target range for participants. Neither figure represents a guaranteed or fixed result.
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Arbitrage is not only about identifying two prices that form a favorable relationship. The corresponding positions also need to remain available under suitable conditions when execution takes place.
A valid relationship detected at one moment may change as the underlying market updates. The strategy therefore depends on more than identifying the initial pricing difference.
The OxusTech model presents the related positions as parts of one arbitrage process, making execution coordination an important element of the strategy.
Low-latency infrastructure is presented as the layer that helps reduce the time between detecting a pricing relationship and processing the corresponding positions.
The figures above are the ranges stated in the OxusTech presentation. Faster infrastructure can reduce execution delay, but it does not guarantee that a detected pricing relationship will remain available, that both corresponding positions will be executable under the same conditions or that an arbitrage result will be achieved.
The arbitrage process can be viewed as a sequence rather than a single action. A pricing relationship first needs to be detected and remain usable, the corresponding positions need to be processed and the market then progresses toward settlement.
The process begins when the system identifies a relationship between corresponding market prices that may fit the arbitrage logic.
The detected relationship must still satisfy the relevant pricing and execution conditions when it is processed.
When suitable conditions remain available, the related positions are presented as being processed through the automated execution infrastructure.
After execution, the corresponding positions progress according to the settlement rules of the underlying prediction market.
The automated process returns to market monitoring and continues looking for new pricing relationships that meet the strategy conditions.
OxusTech connects opportunity detection, execution and settlement within an automated model. The cycle can continue as new market conditions appear, but each potential opportunity still depends on the required pricing and execution conditions being available at that moment.
This flow is a simplified explanation of the strategy described in the OxusTech material. It does not imply that every market scan produces an opportunity or that every detected pricing relationship can be successfully executed or settled with a positive result.
Explore how OxusTech connects account activity, automated arbitrage and platform management, or review the performance ranges presented for different participation levels.