Will Luiz Inácio Lula da Silva win the first round of the 2026 Brazilian presidential election by less than 5%?

The market shows extreme volatility (705% realized vol) and asymmetric payoff structure, with Yes positions offering 349% annualized yield versus 131% for No, suggesting significant uncertainty about whether Lula wins narrowly in 2026. The 40¢ price has risen sharply from 28¢ over seven days (+39% movement), yet liquidity remains thin at $149.64 daily volume with a wide 9¢ spread, making this a speculative positioning rather than a well-established consensus. With 171 days to expiry and a 3.8 info arrival rate, expect continued price discovery as Brazilian political developments unfold, though the high cliff risk index (2) indicates potential for sudden repricing around key events.

Resolution rules

A presidential election is scheduled to take place in Brazil on October 4, 2026. This market will resolve according to the margin of victory between the top two candidates in the first round of the next Brazil Presidential Election. For the purpose of this market, the “margin of victory” is defined as the absolute difference between the percentages of valid votes received by the first- and second-place candidates. Percentages of the valid votes received by each candidate will be determined by dividing the total number of valid votes each of the top two candidates receives by the sum of all valid votes cast in the election. If the reported value falls exactly between two brackets, then this market will resolve to the higher range bracket. This market will resolve based on the official vote count once the vote count has been made official. If a recount is initiated before the vote total has been made official, the market will remain open until the recount is completed and the vote is made official. If the result of this election isn't known definitively by June 30, 2027, 11:59 PM ET, the market will resolve to "Other". This market will resolve based on the result of the election, as indicated by a consensus of credible reporting. If there is ambiguity, this market will resolve based solely on the official results as reported by the Brazilian government, specifically the Superior Electoral Court (Tribunal Superior Eleitoral, TSE) (e.g., https://dadosabertos.tse.jus.br/).

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Regime

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