Self-Custody
Polymarket operates on a non-custodial model. You maintain full control of your funds at all times.- You control your funds - Assets are held in your wallet, secured by your private key
- Smart contract enforcement - Trades execute automatically through audited smart contracts
- No intermediary risk - Polymarket never takes possession of your funds — you maintain full control through your private key
- Full transparency - All trades and positions are recorded onchain and publicly verifiable
- Trustless execution - Settlement happens automatically based on market resolution
How Polymarket Works
Prices Are Probabilities
Every share on Polymarket is priced between$0.00 and $1.00. The price represents the market’s belief in the probability of that outcome occurring.
For example, if “Yes” shares for an event are trading at $0.65, the market believes there’s approximately a 65% chance the event will happen.
Collateral and Tokens
Polymarket uses USDC.e (Bridged USDC on Polygon) as collateral. Every Yes/No pair is fully backed:$1 USDC.ecreates one Yes share and one No share- Winning shares are redeemable for
$1.00 - Losing shares are worth
$0.00
Trading
Polymarket uses a peer-to-peer order book (CLOB) for trading. You trade directly with other users, not against the house.- Buy shares when you think the market underestimates the probability
- Sell shares when you think the market overestimates the probability
- Exit anytime - Sell your position before resolution to lock in profits or cut losses
| Action | When to Use | Profit Scenario |
|---|---|---|
| Buy Yes | You think the probability is too low | Event occurs |
| Buy No | You think the probability is too high | Event does not occur |
| Sell | Lock in gains or limit losses | Price moves in your favor |
Resolution
When an event concludes, markets are resolved through the UMA Optimistic Oracle:- A proposer submits the outcome with a bond
- There’s a challenge period where anyone can dispute
- If disputed, UMA token holders vote on the correct resolution
- Winning tokens become redeemable for $1 USDC.e
Why Blockchain
Polymarket is built on Polygon, a blockchain network, for several key reasons:- Global accessibility - Anyone with an internet connection can participate
- Non-custodial - You control your funds, not a centralized entity
- Transparent - All activity is publicly verifiable onchain
- Fast and affordable - Polygon enables quick, low-cost transactions
- Stable value - USDC.e is pegged 1:1 to the US dollar, avoiding crypto volatility
Proxy Wallets
When a user first uses Polymarket.com to trade they are prompted to create a wallet. When they do this, a 1 of 1 multisig is deployed to Polygon which is controlled/owned by the accessing EOA (either MetaMask wallet or MagicLink wallet). This proxy wallet is where all the user’s positions (ERC1155) and USDC.e (ERC20) are held. Using proxy wallets allows Polymarket to provide an improved UX where multi-step transactions can be executed atomically and transactions can be relayed by relayers on the gas station network. If you are a developer looking to programmatically access positions you accumulated via the Polymarket.com interface, you can either continue using the smart contract wallet by executing transactions through it from the owner account, or you can transfer these assets to a new address using the owner account.Deployments
Each user has their own proxy wallet (and thus proxy wallet address). See Contract Addresses for all deployed factory and trading contract addresses on Polygon.Getting Started
Ready to start trading?Quickstart Guide
Set up your account and make your first trade.
Explore Markets
Browse active prediction markets on Polymarket.