Convallax
The Options Exchange for Prediction Markets
Kushal Mungee
Rahul Rai
Overview
Convallax gives you the ability to trade options on Yes/No prediction market shares. Calls and puts with strikes between 0 and 1, and an expiry that is a pre-specified date in the future.
Ask: we're looking for intros to market-makers interested in partnering to launch a novel financial primitive. Reach us at support@convallax.com.
The problem
Prediction-market volume grew 16x in a year, from $1.2B to over $20B a month. Every mature market has a derivatives layer many times the size of the spot market underneath it. Prediction markets have none.
A headline lands and a contract moves from 40 cents to 90 in one tick, with nothing in between. That breaks every existing way to lever a position: lenders can’t liquidate collateral that disappears between blocks, and perp engines need a path down through the liquidation price, not a jump past it.
Our solution
Convallax lets you trade options on prediction markets: a position at a chosen strike, expiring at a chosen time. The most you can lose is the premium, the upside is much larger than what you risk, and you can make money from the odds moving even when your side ends up losing.
Leverage without liquidation
Leverage on prediction markets is challenging because of gap risk - probabilities can jump to 0 or 1. Options provide a more stable way to achieve leverage: pay the premium (a fraction of the underlying’s price) for exposure to the underlying market, and get paid for every cent the underlying moves in your favor beyond the strike.
Hedging without exiting
Imagine you hold a large YES position at 60¢. You still believe in the outcome, but you’re exposed to short-term volatility — a debate, a poll, a news cycle. Your only option today is to sell, forgoing potential upside. With options, you can buy a put as insurance. You keep your upside, and cap your drawdown. You stay in the trade.
Traction
$2M
Trading Volume
9000+
Active Traders
3
Market Makers Onboarded
0
0.5
1
1.5
2
Oct 8
Oct 15
Oct 22
Vision
Prediction markets are projected to grow from $63 billion in 2025 to beyond $1 trillion by 2030. Until the last 12 to 18 months, none of it was leverageable: onchain outcome markets, institutional liquidity, and flagship-event volume only recently got deep enough to hedge against. Convallax builds the options layer on every event, where you trade not just who wins but how far the odds move and how fast. The prediction-market trader stops picking sides and starts trading volatility.
Team
Kushal Mungee (CEO) — Kushal previously traded options at Virtu Financial, a high-frequency market-maker. A Northwestern graduate with a dual-degree in math and economics, he discovered a passion for financial engineering and innovation at university. Kushal believes that the future of information markets is not just aggregating the wisdom of the crowds into a single probability, but actually pricing the uncertainty of that number.
Rahul Rai (President) — Rahul co-founded Gamma Point, a $100M+ quantitative crypto hedge fund that was acquired by BlockTower Capital. Most recently, he co-founded NeoHumans, a Google-backed AI companion startup with 1M+ users. Rahul believes markets are the best way to effectively allocate resources at scale, and information markets now require a greater degree of sophistication and novel primitives.
