Convexly Enterprise / Market Quality Audit
Venue-level review of coherence, capacity, slippage, and audit-chain reproducibility.
The Convexly Market Quality Audit (MQA) is an institutional diligence engagement scoped to a single prediction-market or crypto-perpetual venue. It produces the artifact a compliance team, market-maker desk, or research office can hand to its risk committee and act on. Each engagement is scoped jointly on an intake call; this page describes what an MQA covers.
Scope
Four audit primitives, scoped to a single venue.
Each MQA bundles four independent measurements; pilots can subset to one or two if the venue prefers a tighter first scope. The Coherent Markets Engine and Edge Score methodology pieces underlie all four. See research / start-here for the methodology entry point.
Coherence violations
Cross-event probability axiom checks (mutually-exclusive sums, conditional Bayes, binary additivity). Per-violation detail with timestamped CLOB inputs and BH-FDR-corrected significance.
Capacity decay
Per-signal maximum-deployable notional walked against full-ladder orderbook depth, reported at $100 / $1K / $10K / $100K aggregate tiers. Distinguishes top-of-book capacity from realized capacity above book.
Slippage sensitivity
Cohort net-EV sweep at additional-slippage haircuts above the venue's published spread baseline. Median per-signal breakeven additional-slippage in basis points.
Audit-chain verification
Optional: third-party reproducibility check on the venue's internal signal pipeline. SHA-256 hash chain from raw inputs to published outputs; any divergence flagged with the input-pair that produced it.
Inputs
What we need from the venue.
- 01Public CLOB or orderbook snapshot feed — read-only access. For most prediction-market venues the public REST endpoint is sufficient; for permissioned venues a daily JSONL dump works.
- 02Event / market metadata — slugs, end-dates, resolution oracles, fee schedules, min-order sizes.
- 03Internal signal pipeline outputs — only required if the venue wants audit-chain review. JSON or CSV of signals with input-hash references.
- 04Scoping document — which primitive(s) to run, target sample window, any contractual confidentiality requirements (NDA available).
Deliverable
What the venue receives.
- AAudit PDF on Convexly Research letterhead — narrative findings + every chart with CIs / p-values inline + scoping caveats. Designed to drop into a compliance file.
- BJSON appendix — every numeric in the PDF, machine-readable. Lets the venue's analytics team re-derive any chart or run the same audit primitive on a different sample window.
- CHash manifest — SHA-256 of every input artifact + every output. Anyone can verify bit-for-bit reproducibility against the audit chain at /research/verify.
- D30-minute walkthrough call — primary author walks the venue's risk committee through findings + answers questions + scopes follow-on work if any.
Limitations
What an MQA does NOT do.
- Does NOT guarantee the absence of coherence violations. The audit measures a sample window; the venue's live state can diverge between samples. Sample size + window length are stated explicitly.
- Does NOT certify the venue. Convexly is not a credit-rating agency or a regulator. The MQA reports measurements; the regulator or risk committee makes determinations.
- Does NOT replace internal compliance review. The audit is a third-party numerical layer; internal procedural review still applies.
- Does NOT cover counterparty credit, custody, or operational risk. Scope is market-microstructure-only.
Next step
Scope an engagement.
If your venue, desk, or research office wants a venue-level market-quality review, apply below for a 30-minute scoping call. We map your specific need to the MQA primitives and agree the scope together before any work begins.