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Web3 · Prediction Markets

Prediction-Market Bots

Automated, risk-aware participation in on-chain prediction markets.

Client
A prediction-market trading group
Sector
Web3 · Prediction Markets
Region
Global (decentralised)
Engagement
Specialist pod
Timeline
5 months to production
Automated
Signal to order
Risk-bounded
Exposure capped
On-chain
Settled on Polygon
01

The brief

Participating effectively in prediction markets means reacting to fresh signals quickly and sizing positions sensibly across many simultaneous markets — work that is tedious and error-prone by hand, and unforgiving of slow reactions.

The client wanted disciplined automation: bots that translate a signal into a correctly sized, risk-bounded on-chain order and manage the position through resolution.

What the client asked for
  • Automate signal-to-order across many simultaneous prediction markets.
  • Size positions to edge and bound exposure per market and overall.
  • Settle transparently on-chain with a minimal, audited contract surface.
  • Manage positions through to market resolution automatically.
  • Validate strategies on historical markets before deployment.
  • Keep every order, fill and exposure level observable.
02

Our AI-native approach

We built a Python strategy layer that converts signals into target positions, with a risk module that bounds exposure per market and overall. Orders settle on Polygon through audited contract interactions, and the whole loop is observable.

As with all our trading work, nothing went live without backtesting and a shadow period.

03

What we built

Signal processing

Inputs are turned into probability-aware target positions.

Position sizing

Stakes are bounded per market and across the portfolio.

On-chain settlement

Orders execute and settle transparently on Polygon.

Resolution handling

Positions are managed and closed through market resolution.

Backtest framework

Strategies are validated on historical markets first.

Observability

Every order, fill and exposure level is logged.

04

How we built it

We built the strategy layer to reason in probabilities and the risk module as a separate bound on exposure, so even aggressive signals could never translate into unbounded positions. Contract interactions were kept minimal and audited to limit on-chain risk.

A backtesting framework over historical markets gave a clear go/no-go basis, and a shadow period always preceded live capital. A specialist pod owned strategy, risk and the Polygon integration end to end.

05

How it works

1

Signal

Inputs are processed into target positions.

2

Size

Risk limits bound the stake.

3

Submit

Orders are placed on-chain.

4

Manage

Positions are tracked to resolution.

5

Review

Outcomes feed back into strategy evaluation.

The intelligence layer

The strategy layer reasons in probabilities, not certainties — positions are sized to edge and bounded by risk policy, which keeps drawdowns controlled across many concurrent markets. Contract interactions are kept minimal and audited to limit on-chain risk.

A backtesting framework over historical markets provides the evidence base before live deployment.

06

The impact

Automated
Signal to order
Risk-bounded
Exposure capped
On-chain
Settled on Polygon

Signal-to-order became fully automated and consistent.

Exposure stayed within policy across many markets at once.

Settlement was transparent and verifiable on-chain.

Backtesting gave a clear basis for go/no-go decisions.

07

Technology stack

Chain
PolygonSolidityAudited contracts
Strategy
PythonProbability models
Risk
Exposure limitsPosition sizing
Ops
BacktestingLogging & monitoring

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