Polymarket Arbitrage Bot (YES/NO Risk-Free Arbitrage)

A high-performance Polymarket Arbitrage Bot built with Python that automatically detects and exploits risk-free YES/NO arbitrage opportunities on Polymarket markets when the combined prices fall below $1.00.

This repository is optimized for developers, quantitative traders, and researchers looking to understand or deploy Polymarket arbitrage strategies with configurable thresholds, fast market scanning, and clean architecture.

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🔍 What Is Polymarket Arbitrage?

On Polymarket, each binary market resolves to $1.00 for the correct outcome.
If YES price + NO price < $1.00, both sides can be bought to guarantee profit.

Example

• YES: $0.48
• NO: $0.49
• Total cost: $0.97
• Payout on resolution: $1.00
• Guaranteed profit: $0.03 per share

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🚀 Key Features

• ⚡ Real-time market monitoring (Socket + polling)
• 🔎 Automatic detection of YES/NO mispricing
• 🧮 Profit & position tracking
• 🧠 Configurable arbitrage thresholds
• 📊 Multi-market support (BTC, ETH, SOL, XRP, etc.)
• 🧱 Clean modular architecture
• 📝 Detailed logging & statistics
• 🧪 Safe simulation mode (no real trades by default)
• 🐍 Python implementation available

📦 Installation

# Clone
git clone https://github.com/m4rcu5o/polymarket-trading-bot.git
cd rarb

# Install dependencies
pip install -e .

# Configure
cp .env.example .env
# Edit .env with your settings

# Generate Polymarket API credentials
python -c "
from py_clob_client.client import ClobClient
import os
client = ClobClient('https://clob.polymarket.com', key=os.environ['PRIVATE_KEY'], chain_id=137)
creds = client.create_or_derive_api_creds()
print(f'POLY_API_KEY={creds.api_key}')
print(f'POLY_API_SECRET={creds.api_secret}')
print(f'POLY_API_PASSPHRASE={creds.api_passphrase}')
"

# Approve Polymarket contracts (one-time setup)
python scripts/approve_usdc.py

# Run
rarb run --live --realtime

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⚙️ Configuration

Create your environment file:

# Wallet
PRIVATE_KEY=0x...                    # Your wallet private key
WALLET_ADDRESS=0x...                 # Your wallet address

# Polymarket L2 API Credentials (generate with script above)
POLY_API_KEY=...
POLY_API_SECRET=...
POLY_API_PASSPHRASE=...

# Trading Parameters
MIN_PROFIT_THRESHOLD=0.005           # 0.5% minimum profit
MAX_POSITION_SIZE=100                # Max $100 per trade
MIN_LIQUIDITY_USD=10000              # $10k minimum market liquidity
MAX_DAYS_UNTIL_RESOLUTION=7          # Skip markets resolving later
NUM_WS_CONNECTIONS=6                 # WebSocket connections (250 markets each)
DRY_RUN=true                         # Set to false for live trading

# Dashboard (optional - omit for no auth)
DASHBOARD_USERNAME=admin
DASHBOARD_PASSWORD=...

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🧪 Simulation Mode (Default)

This bot does not place real trades by default.
All detected arbitrage opportunities are logged.

To enable real trading:

1. Add Polymarket API credentials to .env
2. Implement order signing logic
3. Test with small position sizes

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🧠 Geo-Restrictions

Polymarket blocks US IP addresses for order placement. The recommended architecture:

• Bot server (us-east-1): Low-latency WebSocket connection for price monitoring
• Proxy server (ca-central-1 Montreal): SOCKS5 proxy for order placement

Configure the proxy in your

SOCKS5_PROXY_HOST=your-proxy-ip
SOCKS5_PROXY_PORT=1080
SOCKS5_PROXY_USER=rarb
SOCKS5_PROXY_PASS=your-password

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🐍 Python Version

A fully updated Python implementation is available:

git checkout python_version

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⚠️ Risk Disclaimer

• Arbitrage windows are extremely short
• Slippage & latency may eliminate profit
• Market conditions change rapidly
• Always test before deploying real capital

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📬 Contact

Telegram