Polymarket FAQ — Top questions new users ask

This Polymarket FAQ answers the top questions new users actually ask about accounts, funding, gasless trading, market mechanics, and settlement. Read the short answers up front, then use the sections below for quick how‑tos and the common gotchas every trader should know.

Key takeaways

• Polymarket runs on Polygon and trades with pUSD (wrapped USDC); gas is sponsored by the Relayer.
• Trades use a Central Limit Order Book (CLOB); orders can be limit or FAK market orders.
• Outcome tokens are ERC‑1155 under Gnosis’s Conditional Token Framework (CTF); split/merge/redeem are the core CTF ops.
• Always account for resolution, slippage, fees, and settlement timing when evaluating opportunities — no trade is unconditionally risk‑free.

1) How do I create an account and connect a wallet?

You don't create a traditional Polymarket account; you connect a wallet. Polymarket supports EVM wallets on Polygon (chain ID 137) such as MetaMask, Phantom, Rabby, Bitget, OKX, Coinbase and any EIP-6963 connector.

If you don't already have a wallet, you can use a Proxy wallet that Polymarket will auto‑deploy on your first transaction, or connect a pre‑deployed Gnosis Safe. Wallet deployment and later transactions are gasless for the end user because Polymarket routes them through its Relayer.

2) What currency do I need to trade?

Trades on Polymarket use pUSD (Polymarket's wrapped USDC) as the settlement asset. You need pUSD in your connected wallet to place orders. See the guide “how-to-fund-polymarket-with-usdc” for step‑by‑step funding instructions and common bridges.

3) What does “gasless” mean on Polymarket?

Polymarket sponsors gas via a Relayer (a Gas Station Network model). That means wallet deployment, ERC‑20 approvals, split/merge/redeem CTF operations, transfers, and order placement all occur without you paying gas at the time of the transaction. The Relayer also enforces daily limits and builder attribution where applicable.

Builder tiers control daily relayer limits and rewards — unverified builders have low limits while verified and partner builders have higher limits and potential rewards.

4) How does the order book work? What order types can I use?

Polymarket uses a Central Limit Order Book (CLOB). You can place limit orders or market orders implemented as FAK (Fill‑And‑Kill) with slippage protection. Maker fees are zero; taker fees vary by category and can be between 0% and 1.8%. The CLOB exposes an API for order placement and cancellation.

If you need real‑time book data, use the Market WebSocket (wss://ws-subscriptions-clob.polymarket.com/ws/market) which emits events like best_bid_ask, price_change, last_trade_price and tick_size_change.

5) What are outcome tokens and how do I settle a position?

Each outcome is an ERC‑1155 token minted and managed by the Conditional Token Framework (CTF). When you buy outcomes you either trade them on the CLOB or mint a complete set with the CTF split operation (costing $1.00 of pUSD). After resolution, winning outcome tokens are redeemable for $1.00 each using the redeem operation. merge turns a set back into pUSD before resolution.

Resolution is reported by the UMA optimistic oracle; disputes may pause settlement until UMA resolves.

6) Are there limits or geography rules I should know about?

Polymarket applies geo restrictions. Several countries are fully blocked from opening new orders, and some jurisdictions are close‑only. The United States has a separate CFTC‑regulated pathway requiring KYC for new users. VPN bypass is prohibited by Polymarket’s Terms of Service — do not attempt to evade geo restrictions.

7) How do fees work?

Maker fees are zero. Taker fees are variable and depend on market category, currently within the 0%–1.8% range; the Geopolitics category is fee-free. Fees can affect arbitrage calculations and trade viability — always factor them into edge estimates.

8) What is tick size and why does it change?

The tick size is the minimum price increment. It's usually $0.01, but tightens to $0.001 as prices approach extremes (greater than 0.96 or less than 0.04). The WebSocket emits tick_size_change events when this happens. Tighter tick sizes near resolution can increase competition and affect execution.

9) Common risks new users underestimate

• Resolution risk: UMA disputes can delay or change the payout.
• Slippage and partial fills: thin books can produce unexpected fills on market orders.
• Fee changes and maker/taker distinctions: fees affect net return.
• Smart contract and relayer risk: while gas is sponsored, the Relayer and contracts are part of the execution path.
• Settlement timing: redeeming winning tokens may take time after resolution.

Never call an execution “risk‑free” without listing these points; even mathematically positive spreads can be eroded by the above.

10) I'm new — how should I place my first trade?

Start on liquid markets and observe the order book. Use limit orders if you want price control; use FAK market orders for immediate execution but expect slippage on thin markets. Monitor midpoint, best bid/ask spread, and available depth. If you plan to arbitrage, simulate fees, potential partial fills, and time to redeem.

If you plan to have software place orders, the CLOB API requires API keys and HMAC signing for trading; read the CLOB API docs and respect rate limits.

How this affects your trading

Knowing the mechanics above changes how you size trades and manage risk. Use pUSD funding flows rather than relying on on‑chain ETH; expect no gas bills but do factor in Relayer limits if you run automated strategies. Intra‑market arbitrage opportunities (binary and combinatorial) are common but short‑lived; Polymarket’s architecture and market fees determine whether a nominal edge remains after costs.

Arbitrageurs historically extracted material value from Polymarket — collectively ~ $40 million between April 2024 and April 2025 — which shows opportunities exist but also that competition is intense.

Closing paragraph

This Polymarket FAQ should answer the basic operational and safety questions new users ask. If you want next steps, read the linked guides such as /how-to-fund-polymarket-with-usdc and /polymarket-gasless-trading, or the deeper technical pieces on the CLOB and arbitrage strategies.

Frequently asked questions

Do I need to pay gas to trade on Polymarket?

No. Polymarket sponsors gas via a Relayer so wallet deployment, approvals, CTF split/merge/redeem, transfers, and order placement are gasless for end users. Relayer limits and builder attribution still apply.

What is pUSD and how do I get it?

pUSD is Polymarket's wrapped USDC used for trading. You can fund your wallet with USDC and follow Polymarket’s routing to swap or wrap into pUSD; see the guide /how-to-fund-polymarket-with-usdc for step‑by‑step instructions.

Can I use market orders to guarantee execution?

Market orders on Polymarket are implemented as FAK (Fill‑And‑Kill) to prevent unbounded slippage. They execute immediately against available liquidity and cancel any unfilled remainder. FAK orders do not guarantee price if depth is thin.

What happens after a market resolves?

Resolution is reported by the UMA optimistic oracle. After resolution, winning outcome tokens become redeemable for $1.00 each via the CTF redeem operation. If UMA disputes occur, settlement can be delayed until the dispute is resolved.

Is Polymarket available everywhere?

No. Polymarket geo‑blocks orders by IP. A number of countries are fully blocked from opening new orders, some jurisdictions are close‑only, and the United States uses a separate CFTC pathway with KYC. Do not use VPNs to bypass restrictions.