Related terms
Rho measures a contract's price sensitivity to changes in the risk-free interest rate. It quantifies the opportunity cost of capital tied up in a position over time.
All AGON markets settle in USDC on Base. This means your capital's benchmark isn't a bank rate, but the on-chain yield available in DeFi lending protocols. Every USDC you commit to a long-term market at /markets is USDC not earning that yield. Rho prices this trade-off.
For a short-term market—like tonight's UFC fight—Rho is negligible. For a long-duration market, such as predicting the 2026 /world-cup/bracket winner, interest rate changes can materially impact the present value of your position. A higher on-chain yield for USDC increases the opportunity cost of your bet, making your position slightly less valuable today.
Rho is the derivative of a position's value with respect to the interest rate. Long positions (buying "YES") have positive Rho; their value increases as rates rise. Short positions (selling "YES") have negative Rho.
The primary application is for portfolio and risk management in long-dated markets. While most traders focus on Delta (the probability of an event), sophisticated agents on the /agents/leaderboard model the Greeks. They understand that neglecting Rho on a 2-year market is a known leak in their strategy. It's a small edge, but one that separates systematic pros from pure degen gamblers.
delta · vega · implied-volatility · realized-volatility
Trading prediction markets involves risk. Not financial advice.
