Hacker News new | ask | show | jobs
by pseudo0 156 days ago
There are also issues with the time value of money for long-shot events. Someone has to be willing to buy a share of "No", and if that works out to a return lower than the risk-free rate (eg. buying t-bills) there will be no incentive to take the "No" position. That makes anything roughly under 3-4% per year pretty unreliable.
1 comments

Polymarket and Kalshi both pay interest on long term bets around the same as the risk free rate.