By Harley Young, lead writer at Polymarkets.co.il. Last reviewed: May 2026.
What this chapter covers
This is chapter 24 of our 32-part series on building a Polymarket trading bot. We cover the topic in depth across the sections below. Body content for each section is being written and rolled out chapter-by-chapter; FAQ answers and references are already complete and reflect production experience from running our own trader.
What perps are and why they are different
Native leverage on Polymarket (2-25x)
Funding rate mechanics
Liquidation distance math
ATR-based position sizing
Comparison: Polymarket perps vs Binance/Bybit
Risk: liquidation cascade scenarios
Code: place a leveraged perp order with stop
What perps are and why they are different
This section is in active development. Want to be notified when it goes live? Contact us or watch the authors page.
Native leverage on Polymarket (2-25x)
This section is in active development. Want to be notified when it goes live? Contact us or watch the authors page.
Funding rate mechanics
This section is in active development. Want to be notified when it goes live? Contact us or watch the authors page.
Liquidation distance math
This section is in active development. Want to be notified when it goes live? Contact us or watch the authors page.
ATR-based position sizing
This section is in active development. Want to be notified when it goes live? Contact us or watch the authors page.
Comparison: Polymarket perps vs Binance/Bybit
This section is in active development. Want to be notified when it goes live? Contact us or watch the authors page.
Risk: liquidation cascade scenarios
This section is in active development. Want to be notified when it goes live? Contact us or watch the authors page.
Code: place a leveraged perp order with stop
This section is in active development. Want to be notified when it goes live? Contact us or watch the authors page.
Frequently asked questions
What leverage does Polymarket perps support?
Variable by asset, currently 2x to 25x as of 2026. The cap is set by the platform per market. Higher leverage carries proportionally tighter liquidation distance - 25x means a ~4% adverse move liquidates you. Most disciplined traders run 2-5x even when 10-25x is available.
How does funding rate work on Polymarket perps?
A periodic payment between long and short holders that anchors perp price to spot. When perps trade above spot (longs paying), funding is positive and longs pay shorts. Cycle is typically 8 hours. A funding-rate carry strategy goes short during persistent positive funding and long during negative.
How is Polymarket perps different from Binance/Bybit?
Polymarket perps are USDC-margined (and now pUSD), live on Polygon (lower gas), and trade against Polymarkets order book rather than centralized matching. The asset universe is smaller; the liquidity is thinner. Use Polymarket perps when the asset is unique to Polymarket; otherwise CEX perps usually have better fill quality.
How do I size a leveraged perp position?
Use ATR-based sizing: position_size = bankroll_fraction * bankroll / (ATR_n_days * leverage). Cap leverage to whatever keeps the liquidation distance > 2x your stop-loss distance. With a 5% stop and 10x leverage, you are 1 stop away from liquidation - too tight. With 5% stop and 3x leverage, liquidation is at ~33%, safe.
What happens at liquidation?
Your position is force-closed at the liquidation price. Funds remaining (collateral - liquidation loss) return to your account, often with an additional liquidation fee deducted. Plan for a worst-case where the liquidation slippage is 1-3% beyond the marked liquidation price in volatile markets.
Can I market-make Polymarket perps?
Yes, but it is a different beast than spot prediction markets. Funding rate volatility, liquidation cascades, and shallower order books mean MM strategies that work on Polymarket spot can lose on perps. Specialized perp-MM bots from CEX often port over but need recalibration.
Are Polymarket perps available everywhere?
Subject to the same regional restrictions as the rest of Polymarket Global. US users access via Polymarket US (separate platform with its own perp listings under CFTC oversight). Always check your jurisdiction before depositing into perps.
अक्सर पूछे जाने वाले सवाल
What leverage does Polymarket perps support?
Variable by asset, currently 2x to 25x as of 2026. The cap is set by the platform per market. Higher leverage carries proportionally tighter liquidation distance - 25x means a ~4% adverse move liquidates you. Most disciplined traders run 2-5x even when 10-25x is available.
How does funding rate work on Polymarket perps?
A periodic payment between long and short holders that anchors perp price to spot. When perps trade above spot (longs paying), funding is positive and longs pay shorts. Cycle is typically 8 hours. A funding-rate carry strategy goes short during persistent positive funding and long during negative.
How is Polymarket perps different from Binance/Bybit?
Polymarket perps are USDC-margined (and now pUSD), live on Polygon (lower gas), and trade against Polymarkets order book rather than centralized matching. The asset universe is smaller; the liquidity is thinner. Use Polymarket perps when the asset is unique to Polymarket; otherwise CEX perps usually have better fill quality.
How do I size a leveraged perp position?
Use ATR-based sizing: position_size = bankroll_fraction * bankroll / (ATR_n_days * leverage). Cap leverage to whatever keeps the liquidation distance > 2x your stop-loss distance. With a 5% stop and 10x leverage, you are 1 stop away from liquidation - too tight. With 5% stop and 3x leverage, liquidation is at ~33%, safe.
What happens at liquidation?
Your position is force-closed at the liquidation price. Funds remaining (collateral - liquidation loss) return to your account, often with an additional liquidation fee deducted. Plan for a worst-case where the liquidation slippage is 1-3% beyond the marked liquidation price in volatile markets.
Can I market-make Polymarket perps?
Yes, but it is a different beast than spot prediction markets. Funding rate volatility, liquidation cascades, and shallower order books mean MM strategies that work on Polymarket spot can lose on perps. Specialized perp-MM bots from CEX often port over but need recalibration.
Are Polymarket perps available everywhere?
Subject to the same regional restrictions as the rest of Polymarket Global. US users access via Polymarket US (separate platform with its own perp listings under CFTC oversight). Always check your jurisdiction before depositing into perps.
