Cross-platform arbitrage

Cross platform arbitrage is the practice of exploiting price differences for the same real-world event across multiple trading venues. Traders compare outcome prices on two or more platforms (for example, Polymarket versus another exchange) and execute offsetting trades so that the guaranteed payout across venues exceeds the combined cost, fees, and risks.

In context

On Polymarket, cross platform arbitrage is mentioned for context but is out of scope for the PolyArb bot. PolyArb focuses on intra-market opportunities that live entirely inside Polymarket's CLOB (for example, buying both YES and NO on the same market when the sum of best asks is below $1.00). By contrast, a cross-platform approach requires simultaneous access to external venues, coordination of settlement mechanics, and attention to differences in fee schedules, tick sizes, resolution rules, and geographic availability.

Typical operational differences you will encounter when attempting cross platform arbitrage include:

• Settlement asset and token mechanics: Polymarket trades in pUSD on Polygon using CTF outcome tokens. Other venues may use different chains, settlement tokens, or token standards.
• Resolution and oracle risk: Polymarket uses UMA for resolution; other platforms may use different oracles or dispute processes. Discrepant resolutions can create settlement risk.
• Fees and routing: Fee structures vary (Polymarket taker fees range up to about 1.8% by category while maker fees are zero). External venues may charge different maker/taker fees or have other marketplace costs.
• Geographic and regulatory constraints: Polymarket applies geo-blocking for many countries; other venues have their own restrictions and KYC regimes. VPN circumvention of geo-blocks violates terms of service and should not be recommended.

See also

• venue