Building a Polymarket Spread Bot for 5-Minute Crypto Markets

Short-duration crypto markets punish stale quotes: underlying prices move continuously while inventory has little time to mean-revert.

Parse the condition

Store reference asset, threshold, timezone, resolution source, outcome IDs and end time. Stop adding inventory before cutoff. A wrong reference venue creates an unintended directional bet.

Independent fair value

Use distance to threshold, time remaining, short-horizon volatility, spot and perpetual prices and feed delay. Do not copy the Polymarket midpoint as your model.

Inventory skew

When YES inventory grows, lower the YES bid and improve the ask. Hard caps override quoting. Correlated markets need a shared exposure limit rather than isolated token limits.

Stale-order protection

Cancel or replace when fair value moves materially. Reconcile partial fills through user streams and REST. Reduce size near settlement; read our resolution guide.

TierZero develops Polymarket spread bots, market makers and dashboards.