VolatilityHarvest
VolatilityHarvest quotes inside the spread on volatile Polymarket event markets with thick books, collecting maker rebates while managing inventory sk
What it does
VolatilityHarvest quotes inside the spread on volatile Polymarket event markets with thick books, collecting maker rebates while managing inventory skew. It enters when realised volatility exceeds min_realised_vol, quotes inside the current spread by quote_inside_bps, and limits total position via max_inventory_skew. After a losing quote it cools off for cool_off_after_loss seconds.
Pipeline placement
Applies to: Polymarket binary event markets with elevated realised volatility and thick order books, where posting inside the spread
Why it matters
| If this fails | Consequence |
|---|---|
| Inventory accumulates in one direction | Sustained directional order flow leaves the bot long or short at a mispriced level; inventory risk grows until the market moves against the accumulated position. |
| Volatility drops after entry | When realised volatility falls, spread income shrinks but position remains; the strategy is no longer compensated for carrying risk. |
| Cool-off period ignored after loss | Immediately re-quoting after an adverse fill can compound losses if the adverse move is continuing. |
Inputs
Polymarket inputs
| Input | Source | Required | Use |
|---|---|---|---|
| CLOB book (bid, ask, depth, trades) | ws_market | required | Compute realised vol from tick history; measure current spread; detect depth thickness. |
| Market status | clob_public | required | Skip closed or resolved markets. |
Internal inputs
| Input | Source | Required | Use |
|---|---|---|---|
| KillSwitch active flag | KillSwitch | required | Abort all intent emission if KillSwitch active. |
| Realised volatility per market | internal (volatility model) | required | Gate entry on min_realised_vol threshold. |
| Builder code bytes32 | internal config | required | Injected into builder field on every signed V2 OrderIntent. |
Authority
What this bot is permitted to do
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
| Code | Severity | Meaning | Action |
|---|---|---|---|
| VH_QUOTE_EMITTED | INFO | Vol >= min, no cool-off, skew within bounds. GTC post-only OrderIntent emitted. | Emit GTC maker quote. |
| VH_VOL_BELOW_FLOOR | INFO | Realised vol below 0.01 hard floor. | Skip; no quote. |
| VH_COOLOFF_ACTIVE | INFO | Post-loss cool-off period is active for this market. | Skip; no quote. |
| VH_INVENTORY_LIMIT | HARD_REJECT | Inventory skew exceeds 0.70 hard limit. | Skip all quoting on this market. |
| KILL_SWITCH_ACTIVE | HARD_REJECT | Global kill switch is active. | Skip all markets; no OrderIntents emitted. |
Related bots in Strategy
Used by
Reverse index — strategies that currently reference strat.volatilityharvest. If you change this bot's authority or reason codes, these strategies must re-pass shadow.
| Strategy | State | Activity |
|---|---|---|
| Crypto Q2 — basket rebalance | frozen | last triggered 38m ago |
| US Elect — book-builder | demo-wired | last triggered 45m ago |
Showing 2 of 2 · 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 →