Marketbet’s intellectual property is a unified quantitative framework grounded in structural mathematics, geometric mispricing analysis, and non-predictive alpha extraction. The research spans approximately 150 pages of formal derivations, proofs, and model architectures, establishing a coherent discipline for analyzing price formation and structural deviations in financial markets. The methodology is built entirely on measurable, reproducible, and non-speculative principles.
The IP begins with a formal treatment of equilibrium geometry, where prices and values are modeled as distinct but mathematically relatable entities. Displacement between these entities is represented as a geometric divergence that evolves along quantifiable paths. This creates a basis for analyzing price deviations not through forecasting, but through structural constraints, symmetry considerations, and measurable reversion tendencies.
A central component of the research is passage-based structural analysis, which evaluates markets through the frequency and geometry of transitions across defined price strata. Instead of modelling direction or magnitude, the framework focuses on the density, distribution, and persistence of passages, forming a statistical foundation for recurring structural alpha. This treatment is explicitly non-stochastic and avoids reliance on conventional drift or diffusion assumptions.
The IP introduces synthetic equivalence structures, demonstrating how payoff geometries typically associated with derivatives can be replicated using underlying assets. Through explicit construction of equivalence classes and geometric transformations of price relationships, the research establishes conditions under which non-linear return profiles can be engineered without derivative instruments. These constructions provide the theoretical grounding for convexity extraction methods used in Marketbet’s applied models.
Within relative-value contexts, the IP formalizes mispricing geometry through equilibrium-anchored spread dynamics. Relationships between co-moving assets are modelled using long-run equilibrium constraints, symmetry assessments, and geometric deviation metrics. This forms the mathematical basis for strategies that derive alpha from structural spread dislocations rather than from directional forecasts or sentiment-driven moves.
The body of work also establishes a rigorous reflexive systems architecture, describing markets as multi-layer feedback structures. This includes mathematical treatments of path dependence, state transitions, and recursive value adjustments. Reflexivity is operationalized not as a narrative concept but as a definable system where each iteration of price influences the next through quantifiable channels. This architecture underpins both microstructural and valuation-related model components.
Risk-adjusted return construction is addressed through structural Sharpe mechanics, which redefine the risk/return relationship by isolating structural invariants rather than variance-based risk. By calibrating return expectations to passage geometry, displacement behavior, and equilibrium constraints, the IP provides a basis for constructing return distributions with stable, non-directional alpha under market-neutral assumptions.
Across all components, the research adheres to a strict separation between predictive modelling and structural inference. No element of the framework relies on forecasting future prices. Instead, the models derive their logic from the measurable properties of price relationships, financial statements, structural constraints, and equilibrium dynamics.
Together, these elements constitute a formal discipline that integrates:
- structural geometry of mispricing,
- reflexive multi-layer system logic,
- synthetic payoff replication,
- non-predictive alpha extraction, and
- integrity-weighted valuation theory.
This intellectual foundation supports Marketbet’s operational models, including Pseudo Gamma™ and AIValue™, by providing a mathematically rigorous and academically defensible basis for structural alpha generation in liquid, regulated markets.