Polylight Capital

Engineering Wealth

Leveraging proprietary AI to uncover investment opportunities in emerging categories.

Approach

A new asset class, built quietly.

Prediction markets are emerging as one of the most expressive instruments of the next decade - a continuous price on the future of policy, technology, science, and culture. Polylight is purpose-built to capitalize on that emergence.

- 01

Proprietary research

Our research stack ingests structured and unstructured signals at scale - pricing, news, on-chain flows, prior probabilities - and surfaces conviction the market has yet to fully discount.

- 02

Disciplined execution

Algorithms author and size positions with institutional risk controls. Capital is deployed continuously across hundreds of contracts, never crowded into a single thesis.

Intelligence

A continuous read of the world's price.

A purpose-built research environment that ingests, models, and prices thousands of forward-looking contracts in parallel. Conviction is generated as a distribution - never a single number.

Architecture
Distributed compute
Ensemble forecasting
Cadence
Sub-second pricing
Continuous re-evaluation
Live POLYLIGHT · RESEARCH OS v 4.12.0
SESSION PL · 8F2A UTC ——:——:——
Forecast · macro / fed r decision Ph0 / P50 / P20 · 90 d horizon
PROB · 0.78 PROB · 0.22 NOW
T - 90D- 45DNOW+45DT + 90D
Conviction · cross-market 12×7 venues
MACTECSCISPTCLTCLIFX
Signal feed μ 1.4 / s
Models active
142
+ 04 last hour
Markets covered
4,810
across 38 venues
Decision latency
31 ms
p99 · 90d window
Decisions / day
2.41M
trailing 24h
Conviction index
0.74
+ 0.02 wk / wk
Markets

Where conviction compounds.

Polylight is focused on prediction-market venues with deep liquidity and meaningful informational asymmetry. Each category is modeled by a dedicated research line.

i.
Macro & Policy
Elections, rates, regulation. Where political price discovery outpaces traditional venues.
1,284 contractsP 0.62
ii.
Technology
Model releases, capability benchmarks, adoption milestones across the AI frontier.
910 contractsP 0.71
iii.
Science & Climate
Trial outcomes, atmospheric measures, scientific records - areas with rigorous priors.
642 contractsP 0.48
iv.
Sport & Culture
Quantitative markets with persistent inefficiencies and minimal correlation to capital flows.
1,974 contractsP 0.55
Arbitrage

Mispricing is momentary.

Identical outcomes trade at divergent prices across venues. Polylight monitors parity continuously, enters both sides of the spread, and harvests convergence — an edge that exists precisely because markets disagree.

Scanning POLYLIGHT · PARITY MONITOR v 2.08.1
VENUES12 ACTIVE47
Spread scanner μ 2.1 / s
Contract Δ pp Status
Convergence · live spread dual-venue · 6h window
Session metrics trailing 24h
Pairs scanned2,847
Spreads detected347
Avg spread3.2 pp
Avg convergence4.1 h
Capture rate89%
Venues active12
Min threshold2 pp
Active spreads
47
across 12 venues
Avg spread
3.2 pp
min threshold 2 pp
Convergence time
4.1 h
median · 90d window
Capture rate
89%
+ 2 pp wk / wk
Pipeline

From signal to position, in milliseconds.

A single research stream, continuously cycling. Each stage is auditable, replayable, and instrumented at the contract level.

- i. Ingest

Multi-source intake

Pricing, filings, news, on-chain flows and prior probabilities, normalized at sub-second cadence.

- ii. Encode

Representation

Heterogeneous signals are embedded, time-aligned, and attached to a Bayesian prior for the underlying event.

- iii. Forecast

Ensemble simulation

Thousands of paths are simulated per contract. The model outputs a full distribution, not a point estimate.

- iv. Size

Risk-aware sizing

Positions are scaled by conviction, correlation, and capacity - with hard caps at the strategy and venue level.

- v. Execute

Venue-aware routing

Orders are split across venues with slippage and depth-of-book constraints, then settled and journaled.

Principles

How we operate.

A short, durable list. We revisit them at every meeting.

- 01
Edge is engineered.
Returns are the residual of process. We invest in research, infrastructure, and people before we invest in a trade.
- 02
Capacity is a feature.
Strategies have a finite size beyond which alpha decays. We size the fund to the strategy, never the other way around.
- 03
Privacy is structural.
We do not publish positions, performance, or methodology. The business is private by design.

A quiet edge, compounded patiently

Engineering Wealth

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