When Markets Fail Math: Automated Arbitrage in Prediction Markets

Prediction markets like Polymarket frequently exhibit mathematical inefficiencies where probabilities across mutually exclusive outcomes fail to sum correctly, creating risk-free arbitrage opportunities. This tool automates detection of these mispricings, democratizing algorithmic arbitrage and challenging assumptions about market efficiency. The discovery highlights a broader problem in crypto markets: insufficient liquidity and fragmented pricing allow structural flaws to persist for extended periods.