What is prediction market arbitrage?
On a binary market the YES and NO outcomes should sum to $1.00, because exactly one of them pays out. When the pair trades below that, buying both locks in the difference regardless of which side wins. The trade requires no view on the underlying event.
Is prediction market arbitrage risk free?
No. The payout logic is defined, but execution is not. Legs can fill at different prices, liquidity can disappear between identifying and entering, markets can resolve on criteria you did not anticipate, and capital is locked until resolution. It is a defined-outcome trade, not a risk-free one.
Why does the agent find so few opportunities?
Mispricings on liquid prediction markets are closed quickly, because this is the most obvious trade in the venue and many participants look for it. A scanner that reports no entry on most cycles is behaving correctly rather than failing.
How much capital does this strategy need?
More than most people expect. Because bridging and transaction costs are charged per entry while the edge scales with position size, there is a position size below which a correctly identified arbitrage still loses money. Divide your fixed cost per entry by your expected edge to find it.
Can I paper trade this strategy first?
Yes. Qwnt supports paper mode so you can observe how often the scanner finds qualifying opportunities before committing live capital.
Trading digital assets involves risk. Qwnt AI does not guarantee profits, and strategy performance can change with market conditions. Start with paper trading and review risk controls before using live capital.