Kalshi AI — Mispricing Audit (v4, archetype-targeted)

Report date 2026-08-04 · Capital $2,500 · Horizon 45 days (to Sep 18) · Universe: targets.json allowlist (117 series, generated 2026-08-04 15:06 UTC) · Category focus: AI (advisory — no allowlisted AI-category series had qualifying open markets in horizon; slate worked Tier-1-first as designed)

Verdict

1 pick, 11 logged rejects, $81 deployed (3.2%), $2,419 cash (96.8%). Stage 0 produced only 6 mechanically-clean markets across two theses — the Blanche AG-confirmation complex and the brand-new Pirro-out-as-DC-US-Attorney ladder. The Blanche market repriced +56 points in 48 hours and now sits where the process math puts it; the Pirro ladder still carries residual departure premium after she survived yesterday's White House meeting, and its Sep 1 leg offers a precedent-backed NO in the core band. An efficient week; cash is the position.

Pick 1 of 1 — BUY NO · KXPIRROOUT-26AUG-26SEP01

Will Jeanine Pirro announce her departure as U.S. Attorney for D.C. before Sep 1, 2026?

BUY NO @ 64¢ limit MEDIUM conviction archetype: multi-news-other (Tier 2) cluster: pirro-out-dc
Prob (YES): 32% pre-market → 33% final (blended slightly toward a liquid book) → NO side 67% vs ~63¢ cost
Entry context: YES 38/39 · NO fills 62–64¢ · depth 388 contracts at/below limit · vol24h 18,061 · OI 11,605
Size: 129 contracts (depth cap 388/3), ~$81 max cost — 3.2% of capital, under the 7% MEDIUM cap
EV for the record: +4.2¢/contract on 62.8¢ avg fill ≈ +6.7% on cost

The situation. Trump is publicly furious at Pirro over her office's Aug 1 court filing concluding the Lincoln Memorial Reflecting Pool damage was a flawed renovation, not vandalism — he said she "choked," sources told CNN removal is "highly likely," and he "fumed all weekend" (CNN, WTOP, Forbes, Aug 3). But at the Aug 3 White House meeting she was not fired and did not resign, and she blamed career officials for the filing (CNN, Aug 3–4). No successor has been floated. She is Senate-confirmed (Aug 2025, after Ed Martin's nomination collapsed), so removing her reopens a confirmation problem. The market listed Aug 1 near 97¢, crashed to 38–40¢ on the meeting-survival news, and sits at 38/39 — still pricing a ~2-in-5 departure inside four weeks.

Why NO at 62–64¢. The precedent store shows exactly this shape resolving NO repeatedly:

Precedent: KXKASHOUT-26APR-JUN01 resolved NO — Kalshi priced the rung at 67% off one week of anonymous "matter of time" sourcing; lesson: "sell the spike into the news cycle rather than buying it." KXKASHOUT-26APR-JUL01 (priced 77%) also resolved NO.
Precedent: KXLUTNICKOUT-26JUL01 resolved NO — "even cross-party resignation calls plus documentary scandal do not move this archetype… absent a named successor, price any single month near the base rate."

This case is stronger than those panics in one respect — the President himself, not anonymous sources, is attacking her — which is why the number is 33% and not the sub-25% raw base rate. The live rules_secondary was read this run: resolution is announcement-based, effective date irrelevant, and any cessation counts (removal, resignation, reassignment out of the role). That widens YES paths — a face-saving transfer, the exact treatment Ed Martin got, would resolve YES — and is priced into the blend.

Resolver profile & risk pricing. Resolver: Kalshi multi-news desk on a public-announcement standard; boundaries are unusually explicit in rules_secondary (temporary suspensions/recusals don't count; death → last-fair-price). Forecasting the resolver's verdict, not the vibes: nothing short of an actual announced departure pays YES. Deductions: −3 pts for "officially communicated" edge cases on a volatile principal (e.g. an ambiguous Truth Social post the desk must interpret). Total deductions 3 pts < 15 — passes.

The live way to be wrong. One Truth Social post fires her and NO loses 63¢/contract instantly; the early-close clause settles it same-day. That risk is why this is MEDIUM, depth-capped, and a single leg — the Aug 5/6/7 rungs of the same thesis are logged as cluster runner-ups, not stacked.

Precedents consulted: KXKASHOUT-26APR-JUN01 (NO) · KXKASHOUT-26APR-JUL01 (NO) · KXLUTNICKOUT-26JUL01 (NO) · KXLEAVEPOWELLGOV-26JUL01 (NO) · KXTRUMPADMINLEAVE-26DEC31-TGAB (YES — announcement/effective-date mechanics)
Execution: Limit 64¢, 129 contracts; expected 25@62 + 104@63 ≈ 62.8¢ avg. Do not chase above 64¢ — this book repriced hourly through the Aug 3–4 cycle. Specialist-dense (vol24h > 5k): size stays at the depth cap.

Position sizes & limits

MarketSideLimitContractsMax costMax winConviction% of capital
KXPIRROOUT-26AUG-26SEP01NO64¢129$81$48MEDIUM3.2%
Cash96.8%

Reserve requirement (≥10% of $2,500) satisfied trivially. Depth cap binds before the 7% MEDIUM cost cap ($175).

EV for the record

MarketSideAvg costModel win probEV/contractEV % costPortfolio EV
KXPIRROOUT-26AUG-26SEP01NO62.8¢67%+4.2¢+6.7%+$5.4

Clusters (one leg per cluster)

ClusterDeployed legRunner-ups logged as rejects
pirro-out-dcSEP01 NO @ 62–64¢ (core band)AUG07 NO (88–89¢ thin favorite), AUG06 NO (~90¢), AUG05 NO (94–95¢ deep)
blanche-ag-confirmnone — no edgeKXAGCONF-26JUN05-SEP01, KXBLANCHEJUDICIARY-27-26SEP01

Conviction exposure

TierPositionsCost% of capitalCap
HIGH0$00%15%/pick
MEDIUM1$813.2%7%/pick
Cash$2,41996.8%

Rejected (logged for shadow-tracking)

MarketArchetypePriceSide/ProbReason
KXAGCONF-26JUN05-SEP01
Blanche confirmed AG before Sep 1
confirmation/enact74/76YES · 72%No edge at an efficient price. Repriced +56 pts in 48h (Cornyn/Tillis deal Sunday; 12-10 committee vote this morning). Punchbowl floor plan — cloture filed Wed, cloture vote Fri, final Sat Aug 8 before a 5-week recess — puts my process math (~0.90 cloture × 0.85 schedule-holds × 0.96 final ≈ 72%) inside the book. Precedent (KXAGCONF Jun/Jul rungs, all NO): clock runs from transmittal; this rung is the first with enough runway. NO side <40¢ band.
KXPIRROOUT-26AUG-26AUG07multi-news-other11/12NO · 91%Cluster runner-up to SEP01 NO; entry 88–89¢ is the thin-favorite band against a publicly furious President 3 days out — the shape of the record's worst loss (the 94¢ "lock").
KXPIRROOUT-26AUG-26AUG06multi-news-other10/13NOCluster runner-up; NO ~87–90¢ straddles the deep-favorite reject line.
KXPIRROOUT-26AUG-26AUG05multi-news-other5/6NODeep-favorite band (NO 94–95¢); closes in <13h.
KXCBDECISIONCANADA-26SEP-H0scheduled-process92/95YESDeep-favorite band (≥90¢ reject) on a month-out macro meeting.
KXTRUMPTHUNEOUT-27JAN01-SEPdeparture/ouster29/32NOLiquidity floor: vol24h 214 < 500. Zero-volume cohort had negative realized edge; no exceptions.
KXJUDGECOUNT-26AUG-1
≥2 judges confirmed in Aug
confirmation/enact29/30NOLiquidity floor: vol24h 5 < 500, despite an attractive recess-based NO thesis (Senate gone Aug 7–Sep 7). Phantom edge in a dead book — the documented v1–v3 failure mode.
KXBLANCHEJUDICIARY-27-26SEP01multi-news-other0/100Broken book; committee voted 12-10 this morning, resolution imminent.
KXSENATECONFIRM-26APR29-BMATconfirmation/enact91/99Mechanical: spread 8¢, vol24h 134; deep-favorite besides.
KXUSAIRANAGREEMENT-27-26SEPscheduled-process2/3Mechanical: YES ask ≤5¢ dead tail (tails 0-for-8 lifetime).
KXHEGSETHOUT-26APR-SEP01departure/ousterAlready an active pick.

A further ~28 in-horizon allowlist markets were cut mechanically at Stage 0 (YES ask ≤5¢ dead tails, vol24h < 500, or spread > 5¢) without Stage-2 research: KXALITOOUT, KXKASHOUT, KXIPO* (4), KXIMPEACH, KXSENATECONFIRM (5 more), KXLEAVE* (5), KXFARMBILL, KXSANCTIONRUSSIA, KXTARIFFBILL, KXRECNCH, KXMARTINDNCOUT, KXLEAVEMILLS, KXGALLEGOOUT, KXDEMSCHUMER, KXFARAGEOUTREFORM, KXBURNHAMOUT, KXLUTNICKOUT, KXNYTCHARGE, KXMCDONALDCONF, KXLAKECONF, KXCOMPANYACTIONMERGER, KXCBDECISIONCANADA (2). None showed a book worth a rules read.

Risk profile

Precedent writeback

None this run — no settled target-series market required reconstruction (the KXAGCONF and KXKASHOUT histories consulted are already in the store; KXBLANCHEJUDICIARY and the Pirro Aug rungs are not yet settled). precedents.json ships empty.

Method & sources

Pipeline: Stage 0 allowlist scan (117 series → 95 in-horizon markets → 6 mechanical survivors) → Stage 1 precedent retrieval (26 rows across KXAGCONF, departure/ouster, confirmation/enact) → Stage 2 probability-before-price (pre-market numbers committed after rules + news, before book study) → Stage 2.5 resolver profiling → Stage 3 reject screens → Stage 3.5 bands → Stage 4 one-leg-per-cluster sizing. Prices are live Kalshi *_fp / *_dollars reads, 2026-08-04 15:00–16:30 UTC.

Primary sources: CNN — Trump doesn't fire Pirro at White House meeting (Aug 3) · WTOP/CNN — Furious Trump considering removing Pirro (Aug 3) · Forbes — "she choked" (Aug 3) · NPR — Judiciary Committee to vote on Blanche (Aug 4) · AP/US News — panel advances Blanche 12-10 after GOP-holdout deal (Aug 4) · Punchbowl — Thune's pre-recess floor plan: cloture Wed→Fri, final Sat · The Hill — Blanche momentum, GOP obstacles, McConnell absence math · NPR — Blanche rescinds $1.8B fund to win Cornyn/Tillis (Aug 3) · The Hill — Ed Martin exit / Pirro takeover background (May 2025)