Every term we actually use in client calls, contracts, or code. Plain English first.
Buying and selling the same underlying asset in two different venues or two different forms to capture a price discrepancy. On prediction markets, this includes sum-to-one, cross-platform, and reward-market arbitrage.
The property of a multi-step trade either fully completing or fully aborting - never partially. On Polymarket's CLOB, no two-leg trade is truly atomic; you need a reconciler to handle leg-failure.
In a copy-trading basket, the periodic recomputation of source-wallet weights based on recent performance, drawdown, or activity decay.
Running a strategy against historical market data to estimate how it would have performed. At Predikted, every bot survives a 6-12 month backtest before live deployment.
In cross-platform arbitrage, the risk that two "equivalent" markets resolve to slightly different outcomes due to wording, timing, or oracle differences between platforms (e.g., Polymarket vs Kalshi).
Central Limit Order Book - Polymarket's primary trading endpoint. Lets bots read orderbooks and submit signed orders directly. Rate-limited to 100 req/min on the public endpoint.
The Polygon-side smart contract framework that splits each Polymarket binary outcome into separate YES and NO tokens. Every CLOB order ultimately resolves into a CTF token transfer.
Automatically replicating another wallet's trades with your own position sizing and risk caps. The most common entry-point bot we ship - typically as a 3-8 wallet weighted basket.
Same outcome quoted on two venues (e.g., Polymarket and Kalshi) at different prices - bot buys cheap, sells dear, manages basis risk. Higher edge envelope than sum-to-one, but more legal complexity.
A position with no net directional exposure to the underlying outcome. On prediction markets, achieved by sizing YES and NO legs to cancel out resolution risk - the goal of every sum-to-one arbitrage.
The peak-to-trough decline in account equity over a given period. Most copy-trading bots use a 90-day rolling drawdown stop as the primary kill-switch.
Kalshi's official REST + WebSocket trading endpoint. CFTC-regulated, US-available, generally simpler than Polymarket's CLOB. Authentication via signed API keys (no EIP-712).
Bypassing know-your-customer checks via stand-in identities, foreign documents, or proxy operators. We won't help with this - it violates ToS on both Polymarket (§2.1.4) and Kalshi.
The maximum acceptable signal-to-fill delay above which a trade is skipped. Production copy-trading bots typically set this at 400ms; arbitrage at 300ms or tighter.
When only one side of a multi-leg trade fills, leaving naked directional exposure. Typically happens on 3-7% of sum-to-one attempts. The reconciler handles the unwind.
The fee differential between resting orders (makers, lower fee) and orders that cross the spread (takers, higher fee). On Polymarket, this gap determines whether sum-to-one arb stays net-positive.
Posting both bid and ask orders on a market and capturing the spread plus reward-market LP fees. Requires inventory-aware quoting and a delta hedge when imbalance grows.
Distributing trades across multiple proxy wallets - typically for reward-market eligibility or position-size limits. Compliance-aware setups only; we don't build sybil clusters.
Running the bot on live market data without executing real trades. The mandatory 2-week phase between backtest-green and capital-wire at Predikted.
A Polygon smart-contract wallet that holds your Polymarket positions and delegates execution to an EOA (externally-owned account). Created automatically when you fund a Polymarket account.
Remote procedure call endpoint for reading Polygon blockchain state. Used by our indexer to watch wallets and CTF events in near-real-time.
The bot component that detects leg-failure (one side filled, the other didn't) and triggers a structured unwind - instead of leaving naked directional risk overnight.
Polymarket markets that pay LP fees to participants meeting a liquidity-providing threshold. A common target for market-making bots and the reason behind volume-farming setups.
The trade where you buy YES and NO on the same market for a combined price strictly less than $1.00 - guaranteeing $1.00 of return on a less-than-$1.00 outlay, regardless of which side resolves.
Risk-adjusted return: (return − risk-free rate) / std(returns). Used informally on wallet profiles, where we approximate from monthly buckets - not a public-equity-comparable annualized number.
Max orderbook movement (in bps) acceptable between signal and fill before the bot abandons the trade. Default in our copy-trading configs: 80 bps.
If there's a prediction-market term you keep hearing that isn't here, send it our way. We add about two terms per month based on what clients ask in discovery calls.