Resolution Date Proximity Fade

Resolution Date Proximity Fade MCP Connector for Claude

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A deterministic mean-reversion strategy for exploiting liquidity premiums near market resolution.

3 tools Official Updated Oct 1, 2026 Official Vinkius Partner

This MCP server provides specialized tools to identify mean-reversion opportunities in prediction markets. By analyzing the proximity to market resolution, price extremity, and liquidity constraints, it detects when prices have deviated significantly from fair value due to drying liquidity. Use calculate_fade_signal to identify contrarian trades, estimate_reversion_metrics to project financial outcomes, and validate_exit_window to ensure trades are exited safely before the final settlement to avoid resolution risk.

mean-reversionliquiditytrading-strategyprediction-marketsrisk-management

3 tools expose this connector's capabilities to your AI agent.

calculate_fade_signal

Determines if a trade signal is generated based on proximity to resolution, price extremity, and liquidity constraints

estimate_reversion_metrics

Calculates the expected financial outcomes of a potential fade trade

validate_exit_window

Ensures that the proposed holding period does not violate the safety constraint regarding resolution proximity

See how to talk to your AI agent using Resolution Date Proximity Fade.

Is there a fade opportunity for a market resolving in 30 hours with a Yes price of 0.97 and a spread of 0.15?

Yes, a FADE signal is generated. You should BUY_NO at the current price to target a mean-reversion bounce.

Check if holding a trade for 20 hours is safe if the market resolves in 30 hours.

No, the trade is not safe. You must exit at least 12 hours before resolution, leaving only an 8-hour window.

Calculate the expected return for a trade with an entry price of 0.95, an expected bounce of 0.05, and a spread of 0.12.

The expected return is 0.05 minus the exit cost derived from the 0.12 spread.

A fade signal is a contrarian trade recommendation generated when market prices reach extreme levels (below 0.05 or above 0.95) and liquidity is low near the resolution time.

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