Common Risk Factors in Decentralized AI Subnets
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arXiv
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| Format: | Preprint |
| Publié: |
2026
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| _version_ | 1866911557927043072 |
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| author | Maymin, Philip Z. |
| author_facet | Maymin, Philip Z. |
| contents | I derive a size premium from the constant-product automated market maker used to price Bittensor subnet tokens and test the prediction using daily data on 128 subnets. A small-minus-big factor earns 1.01% daily (Newey-West t = 3.28). The December 2025 halving of token emissions, which the theory predicts should halve the premium, reduces it from 1.17% to 0.51% (p = 0.044). Exact slippage calculations show the premium is implementable only below \$10K in assets under management; at \$100K, transaction costs exceed gross returns. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2603_29751 |
| institution | arXiv |
| publishDate | 2026 |
| record_format | arxiv |
| spellingShingle | Common Risk Factors in Decentralized AI Subnets Maymin, Philip Z. Portfolio Management Pricing of Securities I derive a size premium from the constant-product automated market maker used to price Bittensor subnet tokens and test the prediction using daily data on 128 subnets. A small-minus-big factor earns 1.01% daily (Newey-West t = 3.28). The December 2025 halving of token emissions, which the theory predicts should halve the premium, reduces it from 1.17% to 0.51% (p = 0.044). Exact slippage calculations show the premium is implementable only below \$10K in assets under management; at \$100K, transaction costs exceed gross returns. |
| title | Common Risk Factors in Decentralized AI Subnets |
| topic | Portfolio Management Pricing of Securities |
| url | https://arxiv.org/abs/2603.29751 |