# Adjacent News

Adjacent is an indexing and benchmarking company for prediction markets and event contracts.

- Canonical URL: https://adjacent.markets/indices/sqnti
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- API docs (machine-readable, Mintlify): https://docs.adjacent.markets/llms.txt
- Agent skills index: https://adjacent.markets/.well-known/agent-skills/index.json
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## Sophomore Starting-QB NTI (sqnti)

> **Reading the value.** This index uses methodology-defined points, not a win probability. Do not apply the 50–150 probability conversion.

- Latest value: **868.76** on the points (as of 2026-10-08)
- Daily history: /api/v1/public/indices/sq_nti_mv/prices?interval=1day (2 points)
- Intraday series: /api/v1/public/indices/sq_nti_mv/prices?interval={1min|5min|1hour|1day}
- Constituents: /api/v1/public/indices/sq_nti_mv/constituents?expand=markets
- Auth: none, a public CORS-open snapshot tier.

### Expanded leaf-market constituents (3)

Constituent "Last price" is each market's Yes probability (0–100%), not the index's 50–150 value.

| Ticker | Weight | Last price |
|---|---:|---:|
| no_nti_mv | 33.33% | 992.42% |
| nyg_nti_mv | 33.33% | 911.80% |
| ten_nti_mv | 33.33% | 702.06% |

## Methodology

# Sophomore Starting-QB NTI Methodology

**Adjacent Markets, Inc.**
Version 1.0
Adjacent uses AI and agents to assist with methodology development under [Adjacent’s AI Disclosure Policy](https://cdn.sanity.io/files/ddr9slt2/production/06cfe0b40d87e2291b313451461b10a0b9f37844.pdf). Humans remain responsible for themes, product decisions, and publication readiness.

## Table of Contents

- [1. Executive Summary](#1-executive-summary)
- [2. Index Overview](#2-index-overview)
  - [2.1 Objective](#21-objective)
  - [2.2 Index Name and Identifier](#22-index-name-and-identifier)
  - [2.3 Design Principles](#23-design-principles)
  - [2.4 Target Users and Use Cases](#24-target-users-and-use-cases)
- [3. Universe Definition](#3-universe-definition)
  - [3.1 Identity](#31-identity)
  - [3.2 Admission season and mapping](#32-admission-season-and-mapping)
  - [3.3 Admission tests (mechanical)](#33-admission-tests-mechanical)
  - [3.4 Constituent contracts](#34-constituent-contracts)
  - [3.5 No mid-calendar replacement](#35-no-mid-calendar-replacement)
- [4. Data Sources](#4-data-sources)
  - [4.1 Primary data](#41-primary-data)
  - [4.2 Price convention](#42-price-convention)
  - [4.3 Official resolution](#43-official-resolution)
  - [4.4 The rate](#44-the-rate)
  - [4.5 Published values](#45-published-values)
- [5. Weighting Methodology](#5-weighting-methodology)
  - [5.1 Equal dollar](#51-equal-dollar)
  - [5.2 Quantity setting](#52-quantity-setting)
  - [5.3 No mid-window rebalance](#53-no-mid-window-rebalance)
- [6. Index Calculation](#6-index-calculation)
  - [6.1 Inception, reconstitution, and vintage freeze](#61-inception-reconstitution-and-vintage-freeze)
  - [6.2 Formula by reference](#62-formula-by-reference)
  - [6.3 Intraday marks](#63-intraday-marks)
  - [6.4 Reconstitution pricing window](#64-reconstitution-pricing-window)
  - [6.5 Resolution treatment](#65-resolution-treatment)
  - [6.6 Floor, 0.00, and upside](#66-floor-000-and-upside)
  - [6.7 Performance convention and rounding](#67-performance-convention-and-rounding)
- [7. Index Maintenance](#7-index-maintenance)
  - [7.1 Update and reconstitution schedule](#71-update-and-reconstitution-schedule)
  - [7.2 Regular reconstitution](#72-regular-reconstitution)
  - [7.3 Successor and settlement](#73-successor-and-settlement)
  - [7.4 Halt and zero](#74-halt-and-zero)
  - [7.5 Market disruptions and data failures](#75-market-disruptions-and-data-failures)
  - [7.6 Voids, amendments, and corrections](#76-voids-amendments-and-corrections)
  - [7.7 Methodology review](#77-methodology-review)
  - [7.8 Exclusion](#78-exclusion)
- [8. Governance](#8-governance)
  - [8.1 Index Sponsor and Calculation Agent](#81-index-sponsor-and-calculation-agent)
  - [8.2 Adjacent Index Committee](#82-adjacent-index-committee)
  - [8.3 Meeting Schedule](#83-meeting-schedule)
  - [8.4 Methodology Changes](#84-methodology-changes)
  - [8.5 Conflicts of Interest](#85-conflicts-of-interest)
- [9. Risk Factors and Limitations](#9-risk-factors-and-limitations)
  - [9.1 Zero and reconstitution-gap risk](#91-zero-and-reconstitution-gap-risk)
  - [9.2 Marking and liquidity risk](#92-marking-and-liquidity-risk)
  - [9.3 Implementation cost and uninvestability risk](#93-implementation-cost-and-uninvestability-risk)
  - [9.4 Resolution and contract risk](#94-resolution-and-contract-risk)
  - [9.5 Overlay and variable-n concentration](#95-overlay-and-variable-n-concentration)
  - [9.6 Sophomore-starter overlay risk](#96-sophomore-starter-overlay-risk)
- [10. Changelog](#10-changelog)
- [11. Approvals](#11-approvals)
- [12. Legal Notices and Disclaimers](#12-legal-notices-and-disclaimers)

## 1. Executive Summary

Sophomore Starting-QB NTI (SQNTI) is an equal-dollar, rebased Total Return index of the current-season NTI books of NFL teams that open the season with a second-year starting quarterback. It is built for a thematic investor who wants that overlay as one series. A team is admitted if its official starting quarterback as of reconstitution is in his second NFL season. Membership is a same-season roster overlay on NTI. Cohort size varies; a vintage with fewer than two teams is not launched.
SQNTI is published in two forms:
- **Live:** SQNTI is the current season’s index. After inception, it resets to 1,000.00 at each annual NTI reconstitution date (rebased).
- **Vintage:** SQNTI.YYYY is that season’s terminal value. A vintage is not reset to 1,000.00.
The first vintage year is 2026, unless the designated first official publication slips past that vintage (Section 6.1). This is a **current-season** overlay, not a prior-season ranking. First official publication may be after that vintage’s NTI reconstitution; if so, live does not reset to 1,000.00 on the launch day. The index is uninvestable. Products may reference it through other instruments.

---

## 2. Index Overview

### 2.1 Objective

Each SQNTI season vintage measures the percentage total return of an equal-dollar portfolio of the admitted teams’ NTI event-contract books. Membership and `Q` for vintage YYYY are those of NTI’s reconstitution for that season. After inception, the live series starts at 1,000.00 on each annual NTI reconstitution date. The first official publication date may be after that vintage’s NTI reconstitution (Section 6.1); if so, live continues the reconstructed NAV and does not reprint 1,000.00 on the launch day. Completed vintages remain as historical series. Live values are not a continuous multi-year total-return series.
Contract quantities are set at the NTI reconstitution for that vintage and held. NAV changes only with constituent rates, including when a rate publishes a terminal value. There is no intra-season rebalance and no mid-calendar successor.

### 2.2 Index Name and Identifier

- **Index name:** Sophomore Starting-QB NTI
- **Short name:** SQNTI
- **Live ticker:** SQNTI
- **Vintage ticker:** SQNTI.YYYY (YYYY is the season start year; e.g. SQNTI.2026 for 2026–27)
- **Membership overlay:** same-season sophomore-starter screen for vintage YYYY. The official starting quarterback as of the reconstitution pricing-window start is in his second NFL season (Section 3.2). That is the admission rule. It is not a prior-season ranking.
- **Index type:** Total Return (NAV-based), as defined in [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)
- **Weighting:** Equal dollar
- Reconstitution (membership and `Q`): NTI calendar for that vintage; rebased (`I_R = 1000.00`) at each annual NTI reconstitution
- **Base value at each annual reconstitution:** 1,000.00
- **First official publication / launch:** 12:00 p.m. Eastern Time on 11 September 2026, after the first vintage’s NTI reconstitution. Launch is not a second rebase (Section 6.1)
- **Target exposure:** Current-season NTI books of teams that open with a second-year starting quarterback (n varies; n < 2 is not launched)
- **Calculation unit:** Rates in `[0, 1]` and U.S. dollars for sleeve NAVs; index values are unitless

### 2.3 Design Principles

- **Same-season overlay.** Membership is the set of franchises whose official starting quarterback is in his second NFL season at reconstitution (Section 3).
- **NTI overlay.** Each admitted team contributes its NTI four-sleeve book (Super Bowl, conference, division, two “at least N wins” YES contracts under NTI). SQNTI does not invent a new contract type.
- **Equal dollar across teams.** Admitted teams receive equal reconstitution dollars. Within each team, NTI’s 25% / 25% / 25% / 25% sleeve split applies. That split is a parameter of this index (§3 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)), not a new math type.
- **Stay-put mapping.** The admitted name is the franchise whose official starting quarterback is a sophomore. A prior club is not kept after that player has left. Relocation or rebrand of a continuing franchise stays with that franchise under NTI. If an otherwise-qualifying franchise cannot reconstitute its NTI book, it is dropped. The slot is not filled with a non-sophomore-starter franchise (Section 3.3).
- **Starter overlay is not the identity.** The official starting-quarterback and season-of-service test is a membership overlay only. It is not a constituent and not an event-contract identity. This methodology does not list players by name.
- **Live and vintage; rebased.** After inception, live reprints at 1,000.00 each season on the NTI reconstitution calendar. The reprint is a rebase, not a period return. If the first official publication is after the first vintage’s NTI reconstitution, that launch day is not a rebase.
- **0.00 is a continuing print.** A print of 0.00 is not, by itself, a halt (§9 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)).
- **Exchange-agnostic.** Constituent inputs are the rates published under [Adjacent Event Contract Real-Time Rate Mathematics Methodology](https://cdn.sanity.io/files/ddr9slt2/production/a85890e68d25ac741caaf256b31134318feeb647.pdf). No named venue is the product.
- **Uninvestable; gross of costs.** The index is uninvestable and gross of costs.

### 2.4 Target Users and Use Cases

Thematic investors who want one series on teams that open with a second-year starting quarterback, expressed as those teams’ current-season NTI books. The series may also be used as a research or media reference, or as a benchmark for a product that holds the underlying event contracts or derivatives.

---

## 3. Universe Definition

### 3.1 Identity

**Economic events (blendable):** for each admitted team and season vintage, the same four NTI identities:
1. That team wins that vintage’s Super Bowl (YES resolves 1.00; otherwise 0.00), on official NFL Super Bowl outcome.
2. That team wins its conference that vintage (YES / 0.00), on official NFL conference championship outcome.
3. That team wins its division that vintage (YES / 0.00), on official NFL division outcome.
4. That team records at least N regular-season wins (YES / 0.00) for the two NTI 50% wrap strikes, on official NFL regular-season win total.
Contracts are **blendable** when they are the same economic event with nearly identical rules and resolution. Sameness across listings is established by CUSIP-like event-contract identifiers when published; until then, sameness is team + season + event type (Super Bowl / conference / division / at-least-N-wins). This methodology is exchange-agnostic.
The official starting-quarterback and season-of-service test is a **membership overlay only**. It is not a constituent and not an event-contract identity. Where a depth-chart rumor was observed is not imported into the product definition.

### 3.2 Admission season and mapping

For vintage YYYY (season start year), membership is a **same-season** screen. A franchise is a candidate if its official starting quarterback as of the start of the reconstitution pricing window (Section 6.4) is in his **second NFL season**.
**Second NFL season** means the player has completed exactly one NFL season as of the start of vintage YYYY — equivalently, he is in year 2 of league service, or has one year of official NFL experience entering that season. A player drafted (or first signed to an active NFL roster) for season YYYY − 1 is a sophomore in vintage YYYY, whether or not he started as a rookie. A player with zero completed NFL seasons is a rookie and belongs in RQNTI, not here. A player with two or more completed NFL seasons is not a sophomore. Sophomore is not defined as the leftover of a rookie book and a veteran book.
Example: SQNTI.2026 uses the 2026 reconstitution-window official starting quarterback. Admit the franchise if that player is in his second NFL season. This methodology does not list teams or players by name.
Each admitted team maps to that NFL franchise’s **current-season** NTI book. Mapping is franchise stay-put to the club that opens with the sophomore starter. If that player is not the official starter at the window, that franchise is not admitted. Player-prop contracts are out of scope. This overlay is not a rookie-QB screen and not a veteran-QB screen.

### 3.3 Admission tests (mechanical)

At reconstitution, a team is admitted if and only if all of the following hold:
1. **Official starting quarterback.** As of the start of the reconstitution pricing window (Section 6.4), the franchise has an official Week-1 / reconstitution-window starting quarterback of record. Adjacent uses the league / club designation of the starting quarterback, not a backup, not a “de facto” starter, and not a media rumor. Designated official starting-QB source: official NFL / club designation as of the pricing-window start.
2. **Second NFL season.** That player is in his second NFL season under Section 3.2. He is not required to have started games as a rookie. Passer rating, draft slot, and a second statistic are not used as a hidden sort.
3. **Ties / collisions.** Each franchise appears at most once. Two quarterbacks cannot admit the same franchise twice. Collision is not a vacancy and is not filled with a non-sophomore-starter club.
4. **Vacated.** As of the start of the reconstitution pricing window, if the franchise is no longer an NFL member for the SQNTI vintage year, or cannot reconstitute its NTI four-sleeve book under the NTI methodology (including NTI deferred reconstitution), that franchise is **not** admitted. A dissolved or departed franchise is not kept. The slot is not replaced with a franchise whose starter is a rookie or a veteran.
5. **No backfill from non-qualifiers.** This is not a ranking table. There is no walk to a next-best name. A vacated sophomore-starter franchise reduces n. It does not admit a non-sophomore-starter franchise.
6. **NTI book available.** The mapped franchise is an NFL team for the SQNTI vintage year and can reconstitute its NTI four-sleeve book under the NTI methodology (including NTI deferred reconstitution). If the franchise is excluded from NTI (no longer a league member, or required NTI contracts voided or delisted with no replacement), drop that franchise (same as vacated).
7. **Admission rates.** Each required constituent contract has an admissible admission rate `P_(i,a) > 0` as defined in §5 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology). Contracts are binary (or use a published terminal or void rate under §8 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)). Still open at admission unless the rate has already published a terminal value that NTI would use.
8. **n < 2.** If fewer than two teams remain, that vintage is not launched. A one-team book is a single-name NTI clone. Partial team books are not created. If n ≥ 2, equal-dollar across the n teams (Section 5).
Membership after reconstitution does not change until the next reconstitution calendar. A mid-season benching, injury, or in-season starter change does not add or delete a name. An official restatement of who “really” was the Week-1 starter after the pricing window does not change the live roster mid-calendar.

### 3.4 Constituent contracts

For each admitted team, SQNTI holds the NTI sleeves for that team and vintage, selected under NTI (Super Bowl YES; conference YES; division YES; two “at least N wins” YES that wrap 50% at NTI reconstitution, or NTI’s one-strike fallback). SQNTI does not re-pick win-total strikes separately.

### 3.5 No mid-calendar replacement

No intra-day or intra-season add or delete. No successor until the reconstitution calendar, including when next-season contracts are already listed. Membership is locked at the calendar. A starter change, player trade, relocation of a continuing franchise, or other in-season change after reconstitution does not replace the constituent mid-calendar. Settled contracts remain at the published terminal rate until the vintage is frozen (§8 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)).

---

## 4. Data Sources

### 4.1 Primary data

**Membership overlay:** the official NFL / club designation of each franchise’s starting quarterback as of the start of the reconstitution pricing window, and that player’s official NFL season-of-service / years of experience entering vintage YYYY (Section 3.2–3.3). This methodology does not use a media depth chart as the product definition.
**Rates:** each sleeve contract is marked at the rate published under [Adjacent Event Contract Real-Time Rate Mathematics Methodology](https://cdn.sanity.io/files/ddr9slt2/production/a85890e68d25ac741caaf256b31134318feeb647.pdf), as consumed in §4 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology). 60-second indicative values use the real-time rate. Official daily values and reconstitution admission use the published [Event Contract Reference Rate Methodology](https://cdn.sanity.io/files/ddr9slt2/production/5d9a472b54ceb98518c871be989fa5a39197af35.pdf). This methodology does not recompute a mid, last trade, one-sided quote, or second blend. It is exchange-agnostic and does not name a venue as the product.

### 4.2 Price convention

The approved mark `P_t` is the rate in `[0, 1]`. A published print of 63.00 is `P_t = 0.63`.

### 4.3 Official resolution

SQNTI uses the rates as published, including official settlement and void treatment from [Adjacent Event Contract Real-Time Rate Mathematics Methodology](https://cdn.sanity.io/files/ddr9slt2/production/a85890e68d25ac741caaf256b31134318feeb647.pdf) (§8 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)). This methodology does not write 0.00 or 1.00 itself.

### 4.4 The rate

If no rate is available, SQNTI holds the last valid rate. If there is no valid rate at reconstitution, defer under Section 6.1. A halted contract uses the last valid rate; it does not, by itself, halt SQNTI (§9 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)).

### 4.5 Published values

Published values are the index calculated from the rates, not the rates themselves.
- Indicative values every 60 seconds using the rates on held `Q`.
- **Official daily value:** the index calculated from the rates in the official window 8:50 a.m. through 9:00 a.m. Eastern Time (same window as NTI).
- After a vintage reaches its official terminal value, including 0.00, that constant official daily value continues until the vintage is retired.
- Reconstructed / historical daily values (inception backfill only, if first official publication is after the NTI reconstitution): official-style, labeled not live (Section 6.1).

---

## 5. Weighting Methodology

### 5.1 Equal dollar

SQNTI is **equal dollar** as defined in §3 / §5 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology). `Σ W = 1,000.00` at reconstitution. Let n be the number of admitted teams after vacated franchise stay-put, no-backfill, collision, and NTI exclusion (Section 3.3). If n ≥ 2, equal-dollar those n teams. If n < 2, that vintage is not launched (Section 3.3). Each team sleeve target is
```
W_team = 1000.00 / n
```
Within each team, NTI’s split applies to `W_(team)`:
| Team sleeve | Target (share of W_team) | Constituents |
| --- | --- | --- |
| Super Bowl | 25% | One YES |
| Conference | 25% | One YES |
| Division | 25% | One YES |
| Team total wins | 25% (12.5% each wrap strike; 25% if only one strike is listed under NTI) | NTI 50% wrap pair |
If n = 3, `W_(team)` = 333.33 and the Super Bowl / conference / division targets are 83.33 each; each wins wrap strike is 41.67. If n = 5, `W_(team)` = 200.00 and the NTI 25% split scales accordingly. There is no unallocated cash. Fractional `Q` is permitted.
This is name equal-dollar across teams and NTI’s sleeve split within a team — a parameter of this index, not a new mathematics type (§3 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)).

### 5.2 Quantity setting

`Q` is set at the NTI reconstitution for that vintage from equal-dollar as defined in §3 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology): `Q_i = W_i / P_(i,a)` using the rates at the reconstitution window (Section 6.4). `P_(i,a) ≤ 0` is not admissible. `Q` is held until the next NTI reconstitution calendar. A later first official publication does not reset `Q`. Admission of new quantities does not itself move the index.
Win-total strikes and the 50% wrap are those NTI selects for that team at the same reconstitution. SQNTI does not roll strikes if the median forecast later moves.

### 5.3 No mid-window rebalance

Quantities do not change when rates move or when contracts resolve. Settled names remain in NAV at the published terminal rate until the vintage is frozen (§8 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)).

---

## 6. Index Calculation

Calculation is **as defined in** [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology) (Total Return, equal dollar, rebased). This section does not rewrite that methodology.

### 6.1 Inception, reconstitution, and vintage freeze

**Underlying books and membership.** For vintage YYYY, membership (sophomore-starter screen, no-backfill) and NTI sleeve `Q` for each admitted team are those of NTI’s reconstitution for that season, including NTI deferred reconstitution. SQNTI does not pick a different win-total wrap later. `I = 1000.00` and `NAV = 1000.00` at that NTI reconstitution because `W` is scaled that way (§5 / §12 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)). That is the annual rebase. It is not a second rebase on a later launch day.
**NTI reconstitution calendar (membership and Q).** Membership and `Q` are set on the **same calendar as NTI**: 12:00 p.m. Eastern Time on the date published under NTI (inaugural: 12:00 p.m. Eastern Time on 3 September 2026), or NTI’s deferred 12:00 p.m. Eastern Time on the next Tuesday if a required NTI sleeve for an admitted team is not yet listed, and not after 12:00 p.m. Eastern Time on the day of the first regular-season game.
If an admitted team’s NTI book is delayed, SQNTI waits for that team through NTI’s last reconstitution opportunity. If that team is then excluded under NTI, drop it, set n to the remaining admitted teams, and equal-dollar those teams if n ≥ 2. A non-sophomore-starter franchise is not admitted. If n < 2 at the last opportunity, the vintage is not launched.
**First official publication / launch.** The first official publication date is after that NTI reconstitution. First official publication / launch date: 12:00 p.m. Eastern Time on 11 September 2026.
If the first official publication is mid-vintage (after that vintage’s NTI reconstitution):
- `Q` remains the quantities set at the NTI reconstitution (or as-of that window for the overlay). `Q` is not reset on the launch day.
- Reconstruct official-style daily values from the NTI reconstitution date (or the delayed NTI date) through the day before first official publication. Those values may be published as **reconstructed / historical**, labeled not live. They lead into the first official print. A simulation may use a named venue tape; this methodology stays exchange-agnostic.
- The first official live print **continues** the backfilled NAV path. It does not reprint 1,000.00 on the launch day.
**Later seasons.** The later-launch exception is **inception only**. Each subsequent vintage: membership and `Q` on the NTI reconstitution calendar; live SQNTI **rebases to 1,000.00** on that NTI reconstitution.
At each annual reconstitution after inception (§7.1 **rebased** of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)):
1. Freeze the prior live series as SQNTI.YYYY at its last official value (not reset to 1,000.00).
2. Reset membership under Section 3 and `Q` under Section 5. Composition change is not a market return.
3. Live SQNTI begins the new season at `I_R = 1000.00`.
The first vintage year is 2026. That vintage freezes at the reconstitution (or delayed reconstitution) before the 2027–28 season. If the designated first official publication slips past that vintage, the first *published* vintage is the season whose NTI books are live at the designated launch; prior completed seasons may exist only as reconstructed lookbacks.

### 6.2 Formula by reference

NAV and the live level are as defined in §5 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology): `NAV_t = Σ Q_j P_(j,t)`; `I_t = I_(t-1) × (NAV_t / NAV_(t-1))`. If `NAV_(t-1) = 0`, `I_t = 0.00` until the next reconstitution (§9 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)).

### 6.3 Intraday marks

Indicative values every 60 seconds using the rates on held `Q` (§4 / §10 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)). If a rate is not available, SQNTI holds the last valid rate. A carried-forward last valid rate produces no NAV change for that quantity until a new rate or a terminal rate is published.

### 6.4 Reconstitution pricing window

Rates at 11:50 a.m. through 12:00 p.m. Eastern Time (same window as NTI; §7.1 / §10 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)). The official starting-quarterback and season-of-service test uses the same window start (Section 3.3).

### 6.5 Resolution treatment

The terminal rate as published, included once at the next calculation interval after the rate publishes it. Typically 0 or 1; this methodology does not write 0.00 or 1.00 itself. No reinvestment. No mid-calendar successor (§8 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)).

### 6.6 Floor, 0.00, and upside

No official value below 0.00. A print of 0.00 is a continuing official value (§9 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)). Upside is uncapped.

### 6.7 Performance convention and rounding

- **Vintage:** percent change from 1,000.00 at reconstitution to the terminal value is that season’s total return.
- **Live:** percent change between reconstitutions is a return. The live reprint to 1,000.00 is a rebase, not a return. Live prints are not chained across reconstitutions.
Index levels are expressed to two decimal places (§10 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)). Official daily value uses the window in Section 4.5.

---

## 7. Index Maintenance

### 7.1 Update and reconstitution schedule

- **Indicative values:** every 60 seconds (live, after first official publication)
- Annual reconstitution (membership and `Q`; live rebase after inception): NTI calendar (Section 6.1)
- **First official publication / launch:** 12:00 p.m. Eastern Time on 11 September 2026 (Section 6.1). That publication is after the first vintage’s NTI reconstitution. Launch is not a rebase.
- **Official resolution:** when the rate publishes official settlement or void treatment, that published rate is used in the NAV calculation
- **Official daily value:** the SQNTI index calculated from the rates, not the rates themselves, 8:50 a.m. through 9:00 a.m. Eastern Time
- **Vintage freeze:** same time as the next live reconstitution
- Membership and `Q` change only on the NTI reconstitution calendar
- **Inception backfill:** if first official publication is after the first vintage’s NTI reconstitution, reconstructed / historical official-style daily values from that NTI reconstitution through the day before first official publication (Section 6.1)

### 7.2 Regular reconstitution

**Rebased** (§7.1 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)): after inception, live level starts each annual NTI reconstitution window at 1,000.00. Prior vintage frozen. New `Q` from equal-dollar using the reconstitution pricing window. The rebase is not a period return. Inception: if the first official publication is after that vintage’s NTI reconstitution, live continues the reconstructed NAV; it does not reprint 1,000.00 on the launch day (Section 6.1).

### 7.3 Successor and settlement

As defined in §8 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology): terminal rate as published; `Q` unchanged; settled names stay at that published terminal rate until the calendar; no mid-calendar successor; empty slot until the calendar; void, amendment, and non-binary enter only if and when the rate publishes them.

### 7.4 Halt and zero

0.00 is a continuing print (§9 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology)). A halted contract uses the last valid rate under §4 of [Adjacent Event Contract Index Mathematics Methodology](https://adjacent.markets/static/math/methodology); it does not, by itself, halt SQNTI. Index halt or delayed publication only if a disruption makes routine rates or rules unsuitable, under this methodology and Adjacent governance.

### 7.5 Market disruptions and data failures

When a rate is unavailable, SQNTI holds the last valid rate. If a disruption makes routine rules unsuitable, Adjacent with AIC guidance may publish indicative values, delay or temporarily suspend publication, or make a documented non-routine decision under Adjacent’s [governance policies](https://adjacent.markets/governance).

### 7.6 Voids, amendments, and corrections

SQNTI does not apply venue voids, amendments, or corrected contract outcomes itself. Those enter the index only if and when the rate publishes them. If the official starting-quarterback designation or a player’s season-of-service is restated after the reconstitution pricing window, roster membership does not change mid-calendar solely for that reason. The AIC determines restatements under the Corrections and Restatements Policy only if an SQNTI print was calculated incorrectly from the published rates, or if a rate is later restated.

### 7.7 Methodology review

The AIC reviews this methodology at least annually and may review after NFL schedule or starting-QB designation changes, NTI methodology changes, or other material events. Changing the second-season test, or treating an in-season starter change as a mid-calendar add, is a methodology change.

### 7.8 Exclusion

A mapped franchise is omitted from a vintage only if it fails Section 3.3 (including vacated franchise stay-put or NTI exclusion). Adjacent will not launch a vintage if n < 2. A partial NTI book is not created to fill a slot. A non-sophomore-starter franchise is not admitted to replace a vacated name.

---

## 8. Governance

### 8.1 Index Sponsor and Calculation Agent

Adjacent Markets, Inc. takes on Index Sponsor and Calculation Agent roles and responsibilities for SQNTI. Outcomes and decisions around calculations, screening, maintenance, and operations are performed by Adjacent.

### 8.2 Adjacent Index Committee

The AIC is responsible for overseeing this methodology, how it is interpreted, how it is maintained, necessary corrections, and other governance considerations. The AIC is governed by the [AIC Charter](https://adjacent.markets/static/aic-charter).
Routine implementation of this methodology does not require separate methodology change approvals.

### 8.3 Meeting Schedule

The AIC meets at least quarterly and on an as-needed basis. Reviews may be initiated for:
- Material methodology changes
- Market classification issues or questions
- Data quality issues
- Corrections or restatements
- Market disruptions
- Complaints
- Official starting-quarterback designation, season-of-service, or franchise-mapping questions
- Vacated franchise, leavers of the league, or no-backfill questions
- Same-franchise collision (collision is not a vacancy)
- NTI methodology, sleeve, or calendar changes that SQNTI inherits
- Changes to data sources or [Adjacent Event Contract Real-Time Rate Mathematics Methodology](https://cdn.sanity.io/files/ddr9slt2/production/a85890e68d25ac741caaf256b31134318feeb647.pdf)
- Deferred reconstitutions or a franchise omitted under Section 7.8
- Other circumstances that may affect index integrity

### 8.4 Methodology Changes

Material changes require the process set out in Adjacent’s [Methodology Change Policy](https://adjacent.markets/static/methodology-change-policy), including impact analysis, AIC approval, and notice as applicable.

### 8.5 Conflicts of Interest

The AIC is responsible for ensuring that methodology decisions are made on the grounds of index integrity. Decisions should never be based on the economic interests of Adjacent Markets or products that reference SQNTI.

---

## 9. Risk Factors and Limitations

### 9.1 Zero and reconstitution-gap risk

A series may print 0.00 and remain there. **0.00 is a continuing print.** It is not, by itself, a halt, termination, or suspension. Live and vintage series at 0.00 continue to be published. If `NAV_(t-1) = 0`, `I_t = 0.00` until the next reconstitution. Empty or settled slots stay cash / empty until the reconstitution calendar. The live rebase to 1,000.00 is a discontinuity, not a market return. That discontinuity is the annual NTI reconstitution rebase after inception. If the first official publication is after the first vintage’s NTI reconstitution, launch is not a rebase and is not that discontinuity.

### 9.2 Marking and liquidity risk

Constituent marks are the rates (Section 4). Official daily prints and reconstitution quantities use the rates. Equal-dollar sizing means cheap Super Bowl sleeves can dominate a team book and therefore SQNTI.

### 9.3 Implementation cost and uninvestability risk

The index is uninvestable and gross of costs. A product that holds event contracts, swaps, or futures may face dealer availability, position limits, tracking difference, and other implementation constraints.

### 9.4 Resolution and contract risk

Resolution timing, contract voids, amendments, disputes, and rule interpretation can change the amount and timing of NAV and may delay a reconstitution.

### 9.5 Overlay and variable-n concentration

SQNTI inherits NTI sleeve, wrap, exclusion, and calendar mechanics. Cohort size varies by year. If a qualifying franchise cannot reconstitute under NTI, that name is vacated and is not replaced by a non-sophomore-starter franchise. If n falls below 2, that vintage does not launch. If n is small, each remaining team is a larger share of NAV.

### 9.6 Sophomore-starter overlay risk

The official starting-quarterback and second-season test is a membership overlay, not the event identity. Mapping is franchise stay-put to that club’s current-season NTI book. An in-season benching does not reconstitute the live book. Sophomore starter only: a rookie-QB or veteran-QB cohort is a different series, not a second sleeve.

---

## 10. Changelog

| Version | Date | Changes |
| --- | --- | --- |
| 1.0 | 14 Sep 2026 | Published v1. Locked first official publication at 12:00 p.m. Eastern Time on 11 September 2026, and locked official daily and reconstitution pricing windows. |

---

## 11. Approvals

| Role | Name | Signature | Date |
| --- | --- | --- | --- |
| Chief Executive Officer |  |  |  |
| Chief Operating Officer |  |  |  |

---

## 12. Legal Notices and Disclaimers

This methodology document and all related index levels, data, calculations, analytics, research, files, and other materials are provided by Adjacent Markets, Inc. and its affiliates (“Adjacent”) for informational and benchmark purposes only. They do not constitute investment, trading, legal, tax, accounting, regulatory, or other professional advice and do not constitute an offer, solicitation, recommendation, invitation, or inducement to buy, sell, hold, subscribe for, enter into, or otherwise transact in any security, commodity interest, event contract, derivative, swap, fund, note, structured product, digital asset, financial instrument, or other product. Adjacent does not act as an investment adviser, commodity trading advisor, broker-dealer, fiduciary, sponsor, promoter, issuer, underwriter, or placement agent by publishing this methodology or any related index data.
Important: Adjacent indices are not predictions. Adjacent index levels reflect market-implied prices, trading activity, source data, and methodology outputs. They are not Adjacent’s forecasts, predictions, polling data, political opinions, endorsements, investment views, or statements regarding the likelihood, desirability, or merit of any candidate, party, policy, company, event, or outcome. Index levels may diverge materially from actual outcomes and from other measures of probability, sentiment, or expectations.
It is not possible to invest directly in an index. Any third-party product, strategy, instrument, or service that references, tracks, uses, or is benchmarked to an Adjacent index is the sole responsibility of the applicable issuer, sponsor, manager, exchange, trading venue, broker, adviser, or other third party. Unless expressly stated in a written agreement signed by Adjacent, Adjacent does not sponsor, endorse, sell, promote, manage, advise, issue, underwrite, guarantee, or assume responsibility for any such third-party product or strategy, and Adjacent makes no representation that any such product or strategy will accurately track index performance, achieve any stated objective, provide positive returns, maintain liquidity, avoid loss, or be suitable for any investor or user.
Adjacent indices may reference data from prediction markets, event-contract markets, exchanges, trading venues, data vendors, public sources, and other third parties. Such data and markets may be volatile, thinly traded, fragmented, delayed, revised, interrupted, subject to contract-resolution rules, affected by regulatory changes, or otherwise outside Adjacent’s control. Adjacent may use information it believes to be reliable, but does not guarantee and may not independently audit, verify, or validate the accuracy, completeness, timeliness, availability, representativeness, or continued suitability of any source data.
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See skill: /.well-known/agent-skills/read-index/SKILL.md