⚠ INTERNAL — Operator UX mock · Design preview of V2 development path · demo-wired ≠ production-live · back to dev guide
Polygon · pUSD 10
📓 Developer Guide 📋 Reason Codes 📈 Shadow Mode
JD John Doe · Admin

BasisTrader

strat.basistrader
Strategy planned Spec started frozen

BasisTrader identifies and trades the price basis between a Polymarket market and an off-platform reference (sportsbook line, futures price, or consen

What it does

BasisTrader identifies and trades the price basis between a Polymarket market and an off-platform reference (sportsbook line, futures price, or consensus poll) when the resolution rules of both platforms are provably identical. The bot buys the Polymarket leg when it is cheap relative to the reference and the basis exceeds min_basis_bps after fees.

Pipeline placement

runs after: Observation bus / internal analytics BasisTrader runs before: Risk guardrail pipeline

Applies to: Polymarket binary markets with an identified off-platform reference (sportsbook, futures, poll) sharing identical resolu

Why it matters

If this failsConsequence
Reference instrument diverges post-entry due to rule changeIf the off-platform reference changes its resolution criteria after the basis trade is entered, the position is no longer hedged and becomes an unprotected directional bet.
Stale input dataActing on stale signals for BasisTrader produces trades based on outdated market conditions, generating adverse fills.
KillSwitch not respectedEmitting OrderIntents while KillSwitch is active bypasses risk controls.

Inputs

Polymarket inputs

InputSourceRequiredUse
CLOB book (mid, depth, spread)ws_marketrequiredRead current market price and available depth for order sizing.
Market status (open/closed/resolved)clob_publicrequiredSkip closed or resolved markets.

Internal inputs

InputSourceRequiredUse
KillSwitch active flagKillSwitchrequiredAbort all intent emission if KillSwitch active.
BasisTrader analytics signalinternal (analytics engine)requiredProvides the core BasisTrader signal that drives trade decisions.
Builder code bytes32internal configrequiredInjected into builder field on every signed V2 OrderIntent.

Authority

What this bot is permitted to do

Trade

State

Readiness

Spec started

Status

planned

Class

Alpha Strategy

Default mode

shadow_only

Developer owner

Polytraders core — Strategy pod

Capital impact

Direct

Reason codes emitted

CodeSeverityMeaningAction
BT_TRADEINFOAll gates passed. IOC OrderIntent emitted for BasisTrader.Emit IOC OrderIntent.
BT_MARGINALWARNEdge is within the warning threshold; size reduced 50%.Emit at 50% size; log warning.
BT_NO_EDGEINFOEdge below hard floor. Skipping.Skip; emit sampled DecisionReport.
BT_RULE_MISMATCHHARD_REJECTResolution rules differ between Polymarket and reference instrument.Skip; no OrderIntent.
BT_REFERENCE_STALEHARD_REJECTReference instrument price is stale (> 30s).Skip; no OrderIntent.
BT_HARD_REJECTHARD_REJECTA critical gate condition blocked the trade (stale data, kill switch, or hard parameter breach).Skip; no OrderIntent.
KILL_SWITCH_ACTIVEHARD_REJECTGlobal kill switch is active.Skip all markets; no OrderIntents emitted.

Used by

Reverse index — strategies that currently reference strat.basistrader. If you change this bot's authority or reason codes, these strategies must re-pass shadow.

StrategyStateActivity
AI Frontier — release-day takerfrozenlast triggered 45m ago
NBA props — line-shopdemo-wiredlast triggered 5m ago
Crypto Q2 — basket rebalancefrozenlast triggered 12m ago

Showing 3 of 3 · demo-wired ≠ production-live

Why this matters

Strategy bots does NOT sign, route, or directly submit orders to the chain. Understanding the authority boundary prevents misuse and makes promotion-gate reviews faster and more reliable. View raw spec JSON →
Polytraders Operator UX Mock · INTERNAL · demo-wired ≠ production-live · the plan · reason codes · shadow-mode pipeline
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