Polymarket FAQ — Complete Q&A on Prediction Markets

Polymarket is a decentralized prediction-markets platform where users buy and sell shares in the outcome of real-world events. Each share pays $1 if the event resolves to that outcome and $0 otherwise. Prices range between $0 and $1 and behave as crowd-aggregated probabilities.

Every market has at least two outcomes (Yes/No or multiple choices). Each outcome has its own share, traded on an order book denominated in USDC. When the event resolves, the winning shares pay $1 each and the losers pay $0. The market is then settled and closed.

Because share payouts are binary ($1 win / $0 loss), the market price tracks the perceived probability of the event. A YES share at $0.62 implies the market estimates a 62% chance the answer is YES.

Polymarket operates as a decentralized platform, not licensed by Israeli regulators. Israeli users access it directly through Web3 wallets. We are not lawyers — see /he/guide/risks/ and /he/guide/tax-guide/ for the legal and tax considerations.

No. Funding goes through USDC on Polygon. Most users buy USDC on a regulated exchange (Bit2C, Bits of Gold, Binance, etc.), withdraw to a self-custody wallet, then deposit to Polymarket. Detailed steps: /he/guide/deposit-guide/.

Any Web3 wallet that supports Polygon: MetaMask, Coinbase Wallet, Trust Wallet, Rabby, or hardware wallets via WalletConnect. Polymarket also offers a built-in email/passkey signup that creates a smart wallet for you.

Polymarket itself doesn't require KYC for direct wallet trading. KYC happens upstream — at the exchange where you bought USDC. The platform may apply geo-blocks; check current terms.

Security depends on your wallet hygiene. Use a hardware wallet (Ledger/Trezor) for amounts above a few hundred USDC, never share your seed phrase, and verify every transaction in the wallet pop-up before signing.

Each wallet address is one account. You can connect multiple wallets if you want separate balances, but profile data (history, P&L) lives on-chain per address.

Yes. The site is mobile-responsive. Most users connect a mobile wallet (MetaMask Mobile, Coinbase Wallet, Trust Wallet) via WalletConnect.

You lose access to the wallet — and any USDC and positions inside it — permanently. There is no support line that can recover a self-custody wallet. Always back up the seed phrase offline.

Connect a wallet, deposit USDC on Polygon, pick a market, choose YES or NO, enter the amount of USDC you want to spend, review the implied price and shares, then sign the transaction. Step-by-step: /he/guide/first-trade/.

Buying 100 YES at $0.62 and selling 100 NO at $0.38 give you the same exposure ($62 risk, $100 if YES wins). Polymarket aggregates the order book so you can pick whichever side has better liquidity.

Mid-price is the midpoint between the best bid and best ask. Slippage is the gap between mid-price and your fill — wider on illiquid markets. Always compare the implied price to the mid before confirming.

Polymarket charges no per-trade fee. Polygon network gas is paid in MATIC (often <$0.01). Some Polymarket-funded markets earn liquidity rewards: /he/guide/liquidity-rewards/.

Yes. Click your position and choose Sell. The order book takes you out at the current best bid (for YES) or best ask (for NO). Locking in profit early is a common strategy: /he/guide/selling-positions/.

A taker accepts an existing order (instant fill, pays slippage). A maker posts a limit order at a chosen price (no slippage, may not fill). Pro traders use mostly makers.

Yes. Switch from Market to Limit in the trade panel, set your price, and the order rests until filled or cancelled.

Liquidity is the depth of the order book. Deeper books mean tighter spreads and smaller slippage. Polymarket-funded markets often have rewards programs that pay makers for adding depth.

USDC on Polygon. All deposits, trades, and payouts are denominated in USDC. Polygon is a low-fee EVM chain that bridges to Ethereum.

Buy USDC on a regulated exchange (Bit2C, Bits of Gold, Binance). Transfer it to your Web3 wallet on Polygon. Open Polymarket → Deposit → it auto-detects USDC in your wallet. Full steps: /he/guide/deposit-guide/.

Polymarket → Withdraw → enter the amount and destination address (your exchange's USDC-Polygon deposit address). The transfer is on-chain (Polygon) — funds usually arrive within minutes. Full steps: /he/guide/withdraw-guide/.

There's no protocol minimum. Practically, you need enough USDC + a small MATIC reserve (~0.50 MATIC) for gas. Most exchanges have a minimum withdrawal of ~10–25 USDC.

Polygon settles in 2–10 minutes. The exchange may add a hold (15 minutes to a few hours) before the USDC is tradable on the centralized side.

MATIC is Polygon's native gas token. Every transaction (deposit, trade, withdraw) costs a tiny amount of MATIC. Keep ~1 MATIC in your wallet so you don't get stuck.

UMA's Optimistic Oracle. After the event, the market proposes an outcome backed by the rules. If no one disputes within ~2 hours, it settles. If disputed, UMA token holders vote. Details: /he/guide/uma-disputes/.

Once UMA finalizes the outcome, winning shares are redeemable for $1 each. You can redeem in the Positions tab, or wait for auto-redeem on some markets.

Read the rules tab on the market page before trading. UMA resolves by the literal rules, not by what 'should' have happened. Ambiguous markets often go to a community vote: /he/guide/resolution-explained/.

Anyone can challenge the proposed outcome by posting a bond. UMA voters then decide. If you proposed wrong, you lose the bond; if you challenged correctly, you win it. Most disputes settle within 48–96 hours.

There have been disputed cases (e.g. the 2024 Iran-airstrike market). Polymarket follows UMA's verdict; users frustrated with a resolution can read /he/guide/uma-disputes/ to understand the process.

Likely yes. Israeli tax authorities treat crypto-denominated profits as capital gains (25% on individuals, 23% corporate). We are not tax advisors — see /he/guide/tax-guide/ and confirm with a CPA who handles crypto.

Most banks ask for source-of-funds documentation when crypto returns through Bit2C or Bits of Gold. Keep deposit/trade history exported, and prefer regulated Israeli on-ramps over P2P.

Bit2C and Bits of Gold both support USDC withdrawals to Polygon. Bits of Gold tends to be more business-account friendly; Bit2C is often cheaper. Compare current fees on /he/guide/deposit-guide/.

Polymarket trades are public on Polygon. The Tax Authority can subpoena the exchange where you bought USDC and trace your wallet. Treat it as fully visible and report accurately.

Depends on volume. For occasional traders, personal capital-gains reporting (25%) is simpler. For high-frequency traders treated as business income, a corporation may be more efficient. Consult a CPA.

The smart contracts have been audited multiple times and the protocol has handled hundreds of millions in volume. Risks come from your own wallet hygiene, market resolution, and platform-level access (geo-blocks).

Trading without reading the resolution rules, position-sizing too aggressively on low-liquidity markets, chasing momentum after sharp moves, and ignoring slippage. See /he/guide/common-mistakes/.

Most pros risk 0.5–2% of bankroll per market, scaling up only when edge and liquidity are clearly above the noise. Position-sizing math: /he/guide/position-sizing/.

USDC sits in the Polymarket smart contract while a position is open. After redemption, USDC is in your self-custody wallet. The protocol cannot freeze redemption, but the front-end can geo-block users.

Polymarket curates official markets. Always confirm you're on polymarket.com, never click external links promising rewards, and never share your seed phrase. Phishing is the #1 risk vector.