⚔ Geopolitics risk-off · 1–3 years
A what‑if from the future

What if India clashes militarily with Pakistan or China on its borders?

A military clash on India's borders raises South-Asian risk premia, disrupts regional trade and pressures the rupee, hitting a fast-growing EM bloc.

8%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 8% · 90% range 1–15% · 35 analogues · measured class trade_war 98% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — trade_war ≈1.3449/yr → 98% in 3 yr98%
Analyst prior · editorial share 6% of the class6%
Pooled · weight 85%8%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)8%
Published8%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. A military clash on India's borders raises South-Asian risk premia, disrupts regional trade and pressures the rupee, hitting a fast-growing EM bloc. The trigger decomposes into signed root‑shocks — EM currencies ▼ · Geopolitical risk ▲ · Risk appetite ▼ · Trade tension ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +9.2%
hist +1.65–+8.94% · other way +3.23% (n=12)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -4.7%
hist -2.84–-1.47% · other way -0.37% (n=12)
3Tech sector XLK 📈 chartEquity▼ -3.2%
hist -1.87–-0.79% · other way -0.34% (n=12)
4Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.7%
hist -1.71–-0.81% · other way +2.23% (n=12)
5S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -2.1%
hist -1.82–-0.54% · other way +0.57% (n=12)
6MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -2.2%
hist -2.6–+2.74% · other way +26.92% (n=12)
7Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -2.1%
hist -1.7–-0.39% · other way +4.75% (n=12)
8TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.0%
hist -2.82–+0.06% · other way +2.51% (n=12)
9Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.7%
hist -2.45–+0.96% · other way +0.89% (n=12)
10AMD AMDon Hyperliquid 📈 chartEquity▼ -1.8%
hist -1.21–-0.5% · other way -0.48% (n=12)
11Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.8%
hist -1.5–+1.02% · other way +0.88% (n=12)
12Micron MUon Hyperliquid 📈 chartEquity▼ -1.8%
hist -3.39–+0.46% · other way +2.73% (n=12)
13Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.8%
hist -2.16–-0.12% · other way +1.61% (n=12)
14ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.6%
hist -2.77–+0.33% · other way -1.68% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small gold hedge.
Also moves (not yet on Hyperliquid): Tech sector -3.2% · Turkish lira -1.0% · High-yield credit -1.1% · Indian rupee -0.9% · Chinese yuan -0.9% · Financials -0.7%

Historical precedent — what analogous events actually did

Across 35 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Smoot-Hawley clears the US House 1929-05 US-China extend tariff truce by another 90 days 2025-08 Israel strikes Iran — Operation Rising Lion 2025-06 US and China agree Geneva tariff truce, slashing rates 2025-05 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Wagner Group mutiny against the Kremlin 2023-06 Saudi-Russia oil price war 2020-03 Bitcoin Cash hash war capitulation 2018-11 US List 3 tariffs on $200B of Chinese goods finalized 2018-09 US Section 301 List 1 tariffs take effect on China 2018-07 China retaliates: $50B tariff list incl. soybeans 2018-04 US Section 232 steel & aluminum tariffs imposed 2018-03 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 Mexican peso crash on Trump 2016 win 2016-11 OPEC abandons output defense, opting for market share vs US shale 2014-11 Egyptian revolution / Mubarak uprising 2011-01 US airline stocks plunge ~40% on first trading day after 9/11 2001-09 Hong Kong defends the peg with sky-high HIBOR 1997-10 US-Japan auto trade war: 100% luxury-car tariff threat 1995-05 Soviet August coup attempt against Gorbachev 1991-08 Tiananmen Square crackdown 1989-06 US-Japan Semiconductor Trade Arrangement signed 1986-09 1986 oil price collapse 1986-02 Japan agrees to auto voluntary export restraints 1981-05 Reagan assassination attempt 1981-03 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 JFK assassination 1963-11 Cuban Missile Crisis 1962-10 Korean War begins 1950-06 Smoot-Hawley Tariff Act signed 1930-06
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
COIN COINLONG+17.9% · 5d +6.5%88%7 0.63⚠ differs
TRY TRYSHORT-1.6% · 5d +0.4% ↺ fades80%19 0.50✓ matches cascade
ETH ETHSHORT-6.1% · 5d -8.1%71%14 0.33✓ matches cascade
CNY CNYSHORT-0.7% · 5d -0.2%67%20 0.33✓ matches cascade
SOL SOLLONG+2.0% · 5d -11.7% ↺ fades75%7 0.30⚠ differs
XCU XCUSHORT-1.1% · 5d -0.3%67%20 0.29✓ matches cascade
NVDA NVDASHORT-0.6% · 5d -3.5%65%20 0.22✓ matches cascade
INTC INTCSHORT-1.8% · 5d -1.5%63%28 0.22✓ matches cascade
AUD AUDSHORT-1.0% · 5d -0.3%63%19 0.20✓ matches cascade
INR INRSHORT-0.5% · 5d +0.0% ↺ fades61%19 0.18✓ matches cascade
KRW KRWLONG+0.0% · 5d -0.3% ↺ fades61%19 0.18⚠ differs
KWEB KWEBSHORT-1.6% · 5d -0.8%62%18 0.18✓ matches cascade
GBPUSD GBPUSDLONG+0.1% · 5d -0.1% ↺ fades61%19 0.17⚠ differs
AVGO AVGOLONG+1.8% · 5d -2.2% ↺ fades59%19 0.16⚠ differs

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.