SIGNALAI·May 26, 2026, 4:00 AMSignal75Short term

All Leaks Count, Some Count More: Interpretable Temporal Contamination Detection and Mitigation in LLM Backtesting

Source: arXiv cs.LG

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All Leaks Count, Some Count More: Interpretable Temporal Contamination Detection and Mitigation in LLM Backtesting

arXiv:2602.17234v2 Announce Type: replace-cross Abstract: Backtesting LLMs on resolved events assumes models reason only from pre-cutoff knowledge, yet pretrained models inevitably leak post-cutoff knowledge. We introduce a claim-level evaluation framework that decomposes prediction rationales into atomic claims and applies Shapley values to quantify each claim's decision impact, yielding \textbf{Shapley-DCLR} (\textbf{Shapley}-weighted \textbf{D}ecision-\textbf{C}ritical \textbf{L}eakage \textbf{R}ate) -- an interpretable metric measuring what fraction of decision-driving reasoning is contami

Why this matters
Why now

The increasing deployment of LLMs in critical applications, particularly with backtesting, creates an urgent need to robustly identify and mitigate data contamination.

Why it’s important

This development allows for more reliable and interpretable evaluation of LLM performance, essential for their trustworthy integration into sensitive domains like finance and regulatory compliance.

What changes

The ability to quantify and attribute 'leakage' in LLM reasoning provides a new layer of auditing and validation, challenging assumptions about pre-training data integrity.

Winners
  • · LLM developers
  • · AI auditors
  • · Financial institutions
  • · Regulators
Losers
  • · Over-reliant LLM applications
  • · Unscrupulous data providers
Second-order effects
Direct

Improved reliability and trust in LLM backtesting and historical data analysis.

Second

Increased scrutiny and demand for transparent data provenance and training methodologies for LLMs.

Third

Development of new industry standards and regulatory requirements for 'leakage' mitigation in AI, impacting deployment costs and timelines.

Editorial confidence: 90 / 100 · Structural impact: 55 / 100
Original report

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Read at arXiv cs.LG
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