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

Report date 2026-08-07 · Horizon 45 days (close ≤ 2026-09-21) · Capital $2,500 · Methodology Keel v4 (Stage-0 allowlist, probability-before-price, precedent-fed)

Summary

1 pick, 43 logged rejects, $152.57 deployed (6.1%), $2,347.43 cash (93.9%).

The Stage-0 allowlist yielded 44 open markets closing in the window; 41 died on mechanical cuts (39 on the zero/low-volume floor or price extremes — the exact cohort that hid phantom edge in the resolved record), one is an existing pick (KXHEGSETHOUT), and the two liquid survivors split: one core-band pick (NO on Pirro departure) and one deep-favorite band reject (Blanche AG confirmation at 92¢). A near-empty book in an efficient week is the system working, not failing. Cash is a position.

Pick 1 of 1 — KXPIRROOUT-26AUG-26SEP01 · BUY NO @ 73¢

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

Side: NO Conviction: MEDIUM Band: 73¢ core (60–84) Archetype: multi-news-other Cluster: pirro-dc-usattorney-exit Closes 2026-09-01
Prob (NO): 82% pre-market → 78% final · edge +5.0¢ · EV +6.8% · 209 contracts · cost $152.57 · max win $56.43
Entry context: YES 27 bid (×629) / 28 ask (×1758) · spread 1¢ · vol24h 7,500 [specialist-dense >5k] · OI 27,496

Thesis. The Reflecting Pool blow-up peaked Aug 3–4: Trump said Pirro "choked" and "folded like an umbrella" after her office dropped the vandalism charges (DOJ concluded the damage was a flawed renovation), and was reported "considering removing" her (WTOP, Forbes, CNN — Aug 3). The moment of maximum danger — the Aug 4 Oval Office meeting — passed with no firing and no resignation (CNN, NBC News). Trump's on-record position is "I haven't made a determination" (The Hill, Aug 4–5); no successor has been named or floated; a source told CNN "it would be hard for him to fire her… he likes her." Aug 5–7 brought no escalation. Twenty-four days remain.

Resolver profile & risk pricing. Resolver reads its own clarification: rules_secondary makes a public announcement resolve YES regardless of effective date — a lower bar than an actual vacancy (−4 pts), and a single Truth Social post removing her would settle it instantly (−2 pts). The "expiration of term without renewal" clause is inert: she was Senate-confirmed Aug 2, 2025 to a four-year term. Total deductions 6 pts < 15 — playable.

Price path / 48h check. YES spiked into the 80s–90s on the Aug 3 reports, crashed to ~24 after the Aug 4 meeting, and has sat 27–30 for three days (30→27 over the last 48h — a 2–3¢ drift, not a chased move). We are carrying residual news-cycle premium to expiry, the documented Kash pattern. Slippage: 0.5¢ cross at 73¢ — passes ≤3¢.

Why MEDIUM, not HIGH. The decision-maker himself is publicly undecided, and the announcement bar means one impulsive post resolves YES. That is a live way to be wrong; sizing respects it.

Precedents consulted: KXKASHOUT-26APR-JUN01 resolved NO (priced 67% off one bad news week — reputational damage does not convert to a departure inside ~5 weeks) · KXKASHOUT-26APR-JUL01 resolved NO (the whole ladder was bid off one Politico quote and never corrected until expiry — fade the term structure) · KXLUTNICKOUT-26JUL01 resolved NO (resignation calls plus scandal do not move this archetype absent a named successor) · KXHEGSETHOUT-26APR-JUN01/JUL01 resolved NO (require an affirmative White House signal before paying above base rate).

Position sizes & limits

MarketSideLimitContractsCost (max loss)Max win% of capital
KXPIRROOUT-26AUG-26SEP01NO73¢209$152.57$56.436.1%
Cash reserve$2,347.4393.9%

Sizing: MEDIUM cap is 7% of $2,500 = $175; the binding constraint is the depth cap — 1/3 of the 628.94 contracts visible at the 73¢ NO entry (the resting 27¢ YES bid) → 209 contracts. Reserve ≥10% satisfied trivially.

EV for the record

MarketSideEntryModel prob (side)EdgeEV/contractEV (position)
KXPIRROOUT-26AUG-26SEP01NO73¢78%+5.0¢+5.0¢+$10.45

Recorded for the audit trail only — sizing is EV-agnostic by design.

Cluster table

ClusterLegs surviving Stage 2Deployed legRunners-up rejected
pirro-dc-usattorney-exit1KXPIRROOUT-26AUG-26SEP01 NOnone (single-leg cluster)

Conviction exposure & risk profile

ConvictionPositionsCost at risk% of capitalCap
HIGH0$0.000%15%/pick
MEDIUM1$152.576.1%7%/pick

Risk profile: single-name, single-cluster exposure; worst case −$152.57 (−6.1% of capital) if Trump announces Pirro's departure in any form before Sep 1. No correlated second legs. The book is intentionally small: the only other liquid in-horizon market sits in the banned ≥90¢ band on one side and the banned <40¢ tail on the other.

Execution notes

Rejects — logged for shadow-tracking (43)

Diligenced reject

MarketArchetypePriceProbReason
KXAGCONF-26JUN05-SEP01
Blanche confirmed AG before Sep 1?
confirmation/enactYES 92¢82%→88% Deep-favorite band (≥90¢). Committee cleared 12-10 on Aug 4 after the Cornyn/Tillis deal; Cassidy declared the 50th vote today — but Collins and Murkowski are opposed and McConnell absent, so the count has zero margin, and the market round-tripped 77→24→93 intraday today (fails the 48h move check too). The NO side at 8.5¢ is a <40¢ tail (0-for-8 lifetime). Precedent: KXAGCONF-26-JUL01/JUN15 both resolved NO on clock mechanics; the ≥90¢ ban is the permanent memorial to the 94¢ lock that broke in 48h.

Mechanical cuts (Stage 0)

98 of 136 historical picks entered zero-volume books and that cohort had negative edge — the vol24h ≥ 500 floor and price-extreme cuts are hard rules. One market is an existing pick.

Show all 42 mechanical/existing-pick rejects
MarketReason
KXHEGSETHOUT-26APR-SEP01already an active pick
KXALITOOUT-26SEP01ask 1.6¢ ≤ 5¢ (tail)
KXKASHOUT-26APR-26SEP01ask 3¢ ≤ 5¢ (tail)
KXUSAIRANAGREEMENT-27-26SEPask 3¢ ≤ 5¢ (tail)
KXMAMDANIEO-26AUG08-T0ask 3¢ ≤ 5¢ (tail)
KXCOMPANYACTIONMERGER-27-26SEP01ask 3¢ ≤ 5¢ (tail)
KXIPOANTHROPIC-DATE-26SEP01ask 2¢ ≤ 5¢ (tail)
KXIPOOPENAI-26SEP01ask 1¢ ≤ 5¢ (tail)
KXCBDECISIONCANADA-26SEP-H0vol24h 20 < 500; bid 97¢ ≥ 95¢
KXSENATECONFIRM-26APR29-BMATvol24h 288 < 500; bid 99¢ ≥ 95¢
KXLEAVEWALZ-26JUL-26SEP01vol24h 375 < 500
KXLEAVEMILLS-26NOV03-26SEP01vol24h 154 < 500
KXCBDECISIONCANADA-26SEP-C25vol24h 101 < 500
KXJUDGECOUNT-26AUG-4vol24h 1 < 500
KXBURNHAMOUT-26JUL-26SEP01, KXCBDECISIONCANADA-26SEP-C26/H25/H26, KXDEMSCHUMER-27-SEP01, KXFARAGEOUTREFORM-26JUL-SEP01, KXFARMBILL-26MAY-SEP01, KXGALLEGOOUT-26APR-SEP01, KXIMPEACH-26-SEP01, KXIPOANDURIL-26SEP01, KXIPOSTARLINK-26SEP01, KXJUDGECOUNT-26AUG-1/3, KXLAKECONF-26MAY12-SEP01, KXLEAVELISACOOK-26SEP01, KXLEAVEPOWELLGOV-26SEP01, KXLUTNICKOUT-26SEP01, KXMARTINDNCOUT-26MAY-26SEP01, KXMCDONALDCONF-26JUN17-AUG08, KXRECNCH-27-SEP01, KXSANCTIONRUSSIA-26JUL, KXSENATECONFIRM-26APR29-SBES/CMEA/JCLA/DMAC, KXSENATECONFIRM-26APR30-NSAP, KXTARIFFBILL-26JUL-26SEP01, KXTRUMPTHUNEOUT-27JAN01-SEP vol24h 0 < 500 (zero-volume book)

Method notes (v4)

Keel v4 · run kalshi-mispricing-politics-6kthk · generated 2026-08-07