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Polymarket prediction market: how the platform works

Polymarket prediction market is a decentralized exchange for trading binary and multi-outcome event shares on Polygon. Prices are outcome probabilities expressed in dollars; each winning share pays $1.00 at resolution. Traders use the CLOB, pUSD, and CTF outcome tokens to buy, sell, and assemble complete sets. For active arbitrageurs, PolyArb provides a low-latency, non-custodial execution layer with a $7.62 minimum guaranteed edge and real-time alerts.

Core mechanics of Polymarket

Polymarket runs a Central Limit Order Book (CLOB) on Polygon where outcomes are ERC-1155 CTF tokens. Binary markets have YES and NO outcomes; at fair value their prices sum to $1.00. Multi-outcome markets split that $1.00 across mutually exclusive outcomes.

Trading uses pUSD (Polymarket's wrapped USDC) and the platform sponsors gas via a Relayer. Resolution is handled by the UMA optimistic oracle, and redeemed winning shares pay $1.00 each after settlement. These mechanics matter because they define how and when arbitrageurs can lock and release capital.

Where arbitrage appears on Polymarket

Intra-market arbitrage shows up when the sum of best-ask prices across complementary outcomes is less than $1.00. Buying the complete set (or both legs in a binary) can lock in the difference as edge, subject to fees and settlement timing. Tick size, order book depth, and taker fees affect execution.

Polymarket also features variable taker fees by category and a fee-free Geopolitics category. Maker fees are zero, which can make posting liquidity attractive but also means most quick fills are taken by takers.

How PolyArb helps active traders

PolyArb is a subscription bot for intra-Polymarket arbitrage: $99/month, 40ms latency versus roughly 800ms for free bots, plus Telegram and Discord alerts. It runs non-custodially and is live today, focusing on detecting and executing spreads fast enough to capture micro-arbitrage edges.

PolyArb guarantees a $7.62 minimum edge per qualifying trade to its users and emphasizes precise, low-latency fills. Remember that even mathematical spreads carry risks: UMA disputes, partial fills, slippage, and settlement timing can affect realized profit.

How this affects your trading

If you trade Polymarket frequently, latency and execution quality matter: tighter tick sizes and short-lived spreads favor low-latency automation. PolyArb aims to reduce missed opportunities by combining faster connectivity with alerting.

Use PolyArb as an execution tool rather than a promise of returns. Track fees, market liquidity, and resolution windows, and factor those into your position sizing and risk management.

Start capturing Polymarket edges with PolyArb

Subscribe to PolyArb for low-latency, non-custodial arbitrage execution, Telegram + Discord alerts, and a $7.62 minimum guaranteed edge per qualifying trade.

FAQ

What is Polymarket and how does it work?
Polymarket is a decentralized prediction-market exchange on Polygon where users buy and sell outcome shares denominated in pUSD. Markets use a CLOB and Gnosis's CTF tokens; winning shares redeem for $1.00 after UMA resolution.
Can I arbitrage on Polymarket?
Yes. Intra-market arbitrage exists when summed best-asks across complementary outcomes are below $1.00. Executing quickly captures the edge, but you must account for taker fees, slippage, and resolution risk.
What does PolyArb provide for Polymarket traders?
PolyArb is a non-custodial bot subscription ($99/month) that offers 40ms latency, Telegram and Discord alerts, and a $7.62 minimum guaranteed edge per qualifying trade to help capture intra-market arbitrage faster than free tools.

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