# Resolution Delay Capital Cost AI Agent Connect

> Quantify the opportunity cost of capital locked in delayed prediction market resolutions.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_jg13oyvMn6WiqsjMCOXxuBRueafR3FGA3uhOEJDi/ai-agent-connect
- **Tags:** opportunity-cost, liquidity, polymarket, capital-efficiency, trading-signals

## Description

This MCP server provides deterministic financial valuation for traders dealing with delayed prediction market resolutions. It calculates the exact opportunity cost of capital tied up in positions, allowing for precise decision-making. Use `calculate_opportunity_cost` to find the lost yield, `evaluate_holding_strategy` to receive a SELL or HOLD signal, and `analyze_position_efficiency` to monitor the daily drain on your capital. It helps traders decide if the expected price appreciation justifies the cost of waiting.

## Tools

### calculate_opportunity_cost
Calculate the total opportunity cost of capital tied up in a delayed position

### analyze_position_efficiency
Analyze the daily and total drain on capital due to the delay

### evaluate_holding_strategy
Determine whether to hold or sell a position based on opportunity cost

## Prompt Examples

**Prompt:** 
```
Calculate the opportunity cost for a $1000 position that is 10 days past its expected resolution, with an estimated 5 more days of delay, using a 5% alternative yield.
```

**Response:** 
```
The total opportunity cost for the 15-day delay is $2.05.
```

**Prompt:** 
```
I have an opportunity cost of $50 and I expect my position to gain $40 in value. Should I hold?
```

**Response:** 
```
SELL. The opportunity cost of $50 exceeds the expected $40 appreciation.
```

**Prompt:** 
```
Analyze the efficiency of a $5000 position with a 5% alternative yield and a 20-day total delay.
```

**Response:** 
```
The daily cost is $0.68, the total cost is $13.70, and the yield loss is 0.27%.
```

## Frequently Asked Questions

**How is the opportunity cost calculated?**
The cost is calculated by multiplying the current position value by the alternative annual yield and scaling it by the total delay duration relative to a 365-day year.

**When should I follow a SELL signal?**
A SELL signal is generated when the calculated opportunity cost of waiting exceeds the expected price appreciation of your position.

**What is an alternative yield?**
It is the annual percentage yield (APY) you could earn by redeploying your capital into a low-risk asset, such as USDC lending or Treasury bills.