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

What if North Korea declares a testing moratorium for sanctions relief?

Pyongyang halts long-range and nuclear tests in a phased deal, removing an overhang on Korean assets; KRW firms, KOSPI rerates higher, defense premium drains and VIX eases.

19%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 19% · 90% range 9–30% · 40 analogues · measured class defense 97% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — defense ≈1.2155/yr → 97% in 3 yr97%
Analyst prior · editorial share 20% of the class19%
Pooled · weight 87%20%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)20%
Published19%

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-on shock. Pyongyang halts long-range and nuclear tests in a phased deal, removing an overhang on Korean assets; KRW firms, KOSPI rerates higher, defense premium drains and VIX eases. The trigger decomposes into signed root‑shocks — FX carry appetite ▲ · Defense spending ▼ · Geopolitical risk ▼ · Risk appetite ▲ — 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▼ -6.6%
hist -3.93–+0.13%
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▲ +2.7%
hist +0.94–+1.8%
3Tech sector XLK 📈 chartEquity▲ +1.9%
hist +0.35–+1.48%
4S&P 500 SPXon Hyperliquid 📈 chartIndex▲ +1.5%
hist +0.49–+0.96%
5MicroStrategy MSTRon Hyperliquid 📈 chartEquity▲ +1.4%
hist -0.4–+0.98%
6Solana SOLon Hyperliquid 📈 chartCrypto▲ +1.3%
hist +0.42–+0.96%
7Semiconductors SMHon Hyperliquid 📈 chartEquity▲ +1.3%
hist +0.35–+1.13%
8Lockheed LMT 📈 chartEquity▼ -1.1%
hist -0.87–+0.03%
9Hyperliquid (HYPE) HYPEon HyperliquidCrypto▲ +1.0%
model prior · unmeasured
10Northrop NOC 📈 chartEquity▼ -1.0%
hist -0.7–-0.12%
11Ether ETHon Hyperliquid 📈 chartCrypto▲ +0.9%
hist -6.64–+1.88%
12Bitcoin BTCon Hyperliquid 📈 chartCrypto▲ +0.8%
hist -2.47–+1.45%
13RTX RTXon Hyperliquid 📈 chartEquity▼ -0.8%
hist -1.61–+0.16%
14Gold XAUon Hyperliquid 📈 chartCommodity▼ -0.8%
hist -0.61–-0.02%

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
For a common-man portfolio: A typical stock-heavy portfolio should benefit. Stay invested; you can lean modestly into the beneficiaries below.
Also moves (not yet on Hyperliquid): Tech sector +1.9% · Lockheed -1.1% · Northrop -1.0% · High-yield credit +0.8% · Financials +0.5% · JPMorgan +0.4%

Historical precedent — what analogous events actually did

Across 40 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.

Israel strikes Iran — Operation Rising Lion 2025-06 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Wagner Group mutiny against the Kremlin 2023-06 Turkish lira crash 2018-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Hong Kong HKMA market intervention against speculators 1998-08 Hong Kong defends the peg with sky-high HIBOR 1997-10 Thai baht float 1997-07 Black Wednesday / ERM crisis 1992-09 Soviet August coup attempt against Gorbachev 1991-08 Cuban Missile Crisis 1962-10 Operation Sindoor: India strikes Pakistan after Pahalgam attack 2025-05 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 South Korea martial law crisis 2024-12 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Hezbollah pager and device explosions across Lebanon 2024-09 Nikkei 225 record single-day rebound 2024-08 Nikkei 225 worst single-day crash since 1987 2024-08 Trump 'Taiwan should pay for defense' chip selloff 2024-07 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Ukrainian drone strikes hit Russian refineries, lifting crude and gasoline 2024-03 Bank of Israel pledges $30bn to defend the shekel 2023-10 Turkish lira hits record low after Erdogan re-election 2023-05 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Russia recognizes Donetsk and Luhansk separatist republics 2022-02 Turkish lira record low on rate cuts 2021-11 Turkey fires central-bank governor Agbal, sparking lira plunge 2021-03 Saudi-Russia oil price war 2020-03 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Chevron bids $33 billion for Anadarko, igniting a bidding war 2019-04 India's Balakot airstrike inside Pakistan 2019-02 Pulwama attack ignites India-Pakistan crisis 2019-02 Bitcoin Cash hash war capitulation 2018-11 Jacob Zuma resigns as president 2018-02 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 Pravin Gordhan fired in midnight cabinet reshuffle 2017-03 Mexican peso crash on Trump 2016 win 2016-11 Turkey coup attempt 2016-07 Saudi riyal forward points spike on de-peg fears 2016-01
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
TRY TRYSHORT-4.0% · 5d -0.1%72%34 0.43⚠ differs
ETH ETHSHORT-6.1% · 5d -3.6%68%27 0.27⚠ differs
AMD AMDSHORT-1.6% · 5d -2.2%66%39 0.27⚠ differs
High-yield credit HYGSHORT-0.5% · 5d -0.1%67%34 0.26⚠ differs
INR INRSHORT-0.5% · 5d -0.0%65%34 0.25⚠ differs
COIN COINLONG+5.5% · 5d +3.0%64%18 0.24✓ matches cascade
XLK XLKLONG+0.5% · 5d -0.3% ↺ fades64%34 0.22✓ matches cascade
AVGO AVGOLONG+3.1% · 5d -1.5% ↺ fades61%34 0.21✓ matches cascade
MU MUSHORT-2.2% · 5d -3.1%63%39 0.21⚠ differs
AUD AUDSHORT-0.8% · 5d -0.6%62%34 0.20⚠ differs
INTC INTCSHORT-2.4% · 5d -1.5%60%39 0.19⚠ differs
RTX RTXSHORT-1.1% · 5d -1.2%59%39 0.17✓ matches cascade
Volatility VIXLONG+2.4% · 5d +0.9%59%39 0.16⚠ differs
MSTR MSTRSHORT-0.9% · 5d -3.0%59%35 0.14⚠ 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.