Polymarket is the largest prediction market in the world, and its onchain design makes it one of the most natural venues for an AI agent to trade. Markets settle around the clock, prices move the instant news breaks, and the whole order book lives behind a public API. That is a combination a human trader can't cover and an always-on agent can. This guide walks through the full setup: understand which Polymarket you're allowed to use, get a funded wallet and CLOB API credentials, wire the trading tools into your [OpenClaw Direct](https://openclaw.direct) Instance, add the safety rules that keep a prediction-market agent honest, and give your agent its first bounded task. TL;DR Decide your venue first: US residents can only lawfully use **Polymarket US** (a CFTC-regulated market that launched December 3, 2025, with full KYC and USD settlement); everyone else uses the international onchain exchange on Polygon. For the onchain platform, fund a Polygon wallet with USDC, place one trade so Polymarket deploys your proxy wallet, then generate CLOB API credentials (an API key, secret, and passphrase). Point your agent at the Polymarket [Agents framework](https://github.com/Polymarket/agents) or a Polymarket MCP server, attach a safety skill with per-trade and daily caps, and run in manual-approval mode until you trust what you're seeing. Run it on a hosted Instance, not your laptop, because prediction markets resolve overnight. ## First, Which Polymarket Are You Actually Allowed to Use? This is the question that decides everything else, and most bot tutorials skip it. There are two Polymarkets, and the one you can legally use depends on where you live. Getting this wrong isn't a technicality — it's the difference between a supported setup and a terms-of-service violation that can freeze your funds. The original **international exchange** is a fully onchain platform running on Polygon. It has been geoblocked for US IP addresses since Polymarket's 2022 settlement with the Commodity Futures Trading Commission. It is available in more than 100 countries, and it is the platform that exposes the public trading API this guide is built around. **Polymarket US** is the newer, US-legal route. It's a CFTC-registered Designated Contract Market operated by QCX LLC that launched on December 3, 2025, after Polymarket's acquisition of the exchange. It requires full KYC — government ID, Social Security number, proof of residency, and a live selfie — and it settles in US dollars through regulated futures commission merchants rather than in crypto. As of mid-2026 it does not expose the same open onchain CLOB API that the international platform does, so the programmatic agent workflow below applies primarily to the international exchange where it is legal to access. A word on VPNs, because it comes up constantly: routing around the geoblock to reach the international platform from a restricted country violates Polymarket's terms of service, and the platform actively detects it. Polymarket uses browser fingerprinting, WebRTC leak analysis, and on-chain wallet history in addition to IP checks, and it can close accounts and trigger identity verification on flagged activity. We covered the general principle in [our AI agent safety guide](/blog/ai-agent-safety-tips): an agent that operates outside the rules is a liability, not an asset. Use the venue that's legal where you are. ## Why a Prediction-Market Agent Belongs on a Hosted Instance Prediction markets are the clearest case yet for running your agent somewhere other than your laptop. A stock market closes at 4pm. A Polymarket market on an election, a sports outcome, or a Fed decision does not — it reprices the moment a headline drops, and the sharpest edges appear in the hours when you're asleep. An agent that's only online when your laptop is awake will miss exactly the moves that matter. That last point is load-bearing. The entire premise of an agentic trading setup is that the software works while you don't. If your bot is a Python script on a machine you also use for browsing, then a closed lid, a sleep timer, or a reboot is a missed resolution. Worse, your CLOB API secret and — on some setups — your wallet's private key are sitting in a config file on a device that travels with you. A lost or compromised laptop becomes a lost or compromised trading account. OpenClaw Direct is built for this shape of problem. Every Instance runs on its own dedicated machine, isolated from every other user. Your API credentials live in the platform's encrypted credential store rather than a plaintext file on your hardware. The infrastructure runs at 99.9% uptime with 24/7 monitoring, so your agent stays online through the overnight hours when prediction markets do most of their repricing. And if something looks wrong, you can suspend or terminate the Instance from any browser on any device — a platform-level kill switch that doesn't depend on you being at your desk. For an agent touching real money on a market that never sleeps, that's the right surface area. ## What You Need Before You Start The prerequisites are short, and the order matters. Skipping ahead is the most common way people get stuck, usually on the proxy-wallet step. - **An OpenClaw Direct account.** Sign up at [openclaw.direct/users/sign\_up](https://openclaw.direct/users/sign_up). Every subscription includes free trial credits to cover your first AI usage. The Advanced plan ($29/month) is a sensible starting point for trading workloads because it gives you dedicated RAM and access to any AI model you want to use as the agent's reasoning engine. - **Legal access to a Polymarket venue.** Confirm which platform applies to you using the section above. The programmatic workflow below assumes the international onchain exchange, accessed from a jurisdiction where that is permitted. - **A Polygon-compatible wallet.** MetaMask is the common choice. You'll fund it with USDC on the Polygon network and keep a couple of dollars of POL (formerly MATIC) on hand for gas. - **An amount you're prepared to lose.** Prediction-market positions can resolve to zero — that's the nature of a binary outcome. Fund your trading wallet like a poker stake: a number that would sting but wouldn't change your month. ## How Does Polymarket's API Actually Work? Polymarket exposes three separate services, and knowing which does what saves hours of confusion. The **CLOB API** (Central Limit Order Book, hosted at `clob.polymarket.com` on Polygon, chain ID 137) is where trading happens — placing and cancelling orders. The **Gamma API** is a public, read-only service for discovering markets and events. The **Data API** serves historical analytics and positions. Your agent reads from Gamma and Data to decide, and writes to the CLOB to act. Authentication uses two layers, and this trips up nearly everyone the first time. **Level 1** is your wallet's private key, which signs a one-time EIP-712 message to derive your API credentials. **Level 2** is those derived credentials — an API key, secret, and passphrase — which HMAC-sign every individual order. The point of the two-layer design is that your bot signs orders with the L2 credentials without exposing your private key on every trade. Before your first order, you also approve Polymarket's exchange contracts to spend your USDC and outcome tokens, either through the UI or programmatically with `setApprovalForAll()`. One quirk to internalize: when you first trade on Polymarket, the platform deploys a **proxy wallet** for you — a Gnosis Safe with you as the single signer. Your positions and USDC live in that proxy wallet, not directly in your MetaMask address. The single most common beginner error is funding the MetaMask address instead of the proxy "funder" address the bot needs. Place one small manual trade in the UI first; that deploys the proxy wallet and makes the funder address visible, and it also confirms the gasless flow (Polymarket relays your transactions and pays the Polygon gas) is working. On the SDK side, note that Polymarket released `py-clob-client-v2` in October 2025 and deprecated the original `py-clob-client`. If you follow an older tutorial and hit import errors, an outdated client is usually why. There is no official sandbox for the CLOB, so test with tiny real amounts rather than expecting a paper-trading endpoint. ## The Setup, Step by Step ### Step One: Sign Up for OpenClaw Direct and Provision Your Instance Go to [openclaw.direct/users/sign\_up](https://openclaw.direct/users/sign_up), create an account, and pick the Advanced plan to start. The included trial credits are enough to validate the whole setup. From the dashboard, create a new Instance, name it something like "Polymarket Agent," and start provisioning. It takes a few minutes — use that time to get your wallet ready in Step Two. ### Step Two: Fund Your Wallet and Deploy the Proxy Wallet Connect your MetaMask wallet to polymarket.com. Move USDC to it on the **Polygon** network — not Ethereum, not BNB Chain, or your funds will land in the wrong place. There's no minimum; you can start with as little as a few dollars. Send along $2–5 of POL for gas even though most Polymarket trading is gasless, because you'll need it for approvals and the occasional direct transaction. Then place one small trade in the Polymarket web interface. This is the step that deploys your proxy wallet and reveals the funder address your bot will reference. Skipping it is why so many first bots fail silently with a "no funds" error despite a funded MetaMask. ### Step Three: Generate Your CLOB API Credentials Derive your L2 credentials by signing the L1 message with your wallet key. Using `py-clob-client-v2`, you initialize the client with the CLOB host, Polygon chain ID (137), and your wallet, then call the credential-creation method once and store the returned API key, secret, and passphrase. These three values are what your agent uses to sign orders. Treat the secret and passphrase like passwords — which is exactly why they belong in a managed credential vault rather than a repo or a dotfile. ### Step Four: Wire the Trading Tools Into Your Instance You have two clean paths to give your OpenClaw agent the ability to trade, and both are open source. The first is the official [Polymarket Agents framework](https://github.com/Polymarket/agents) (MIT-licensed), which bundles a `GammaMarketClient` for market discovery, a `Polymarket` class that executes orders on the CLOB, and a RAG layer for feeding news into the model's decision. The second is a Polymarket **MCP server** — several community implementations expose the order book, market odds, spreads, and history as agent-callable tools, with some spanning dozens of tools covering trading, copy-trading, and portfolio management. If you've read [our guide to the best OpenClaw skills](/blog/best-openclaw-skills), the MCP pattern will be familiar: the server publishes a set of tools, and your agent calls them. Whichever you choose, configure it inside your Instance with your CLOB credentials and funder address supplied through OpenClaw Direct's credential store — never hard-coded into a file. The community has already built plenty of reference implementations to learn from, including bots that use an ensemble of models (Anthropic, OpenAI, and others) to estimate a fair probability and size positions with the Kelly criterion. You don't have to start from a blank file. ### Step Five: Attach a Safety Skill (Don't Skip This) Wiring the tools gives your agent the capability to trade. It does not give it the judgment to trade well. Before your agent places a single order, attach a small persistent [safety skill](/blog/ai-agent-safety-tips) to your Instance. Prediction markets have their own failure modes, so a sensible starting set of rules includes: - A per-trade dollar cap, and a separate daily total cap across all trades. - A rule to read your current positions before every order, to avoid stacking into a market you're already heavily in. - A maximum-price rule — refuse to buy a "yes" share above, say, 90 cents, where the potential upside no longer justifies the resolution risk. - A liquidity floor, so the agent won't take a large position in a thin market it can't exit. - A hard ban on any market flagged for resolution disputes or ambiguous rules. This lives in a skill rather than a chat instruction because chat instructions get lost when the agent's memory is compacted. The pattern from [structuring AGENTS.md for OpenClaw](/blog/how-to-structure-agents-md-for-openclaw) applies directly: persistent rules belong in persistent files. A skill survives every conversation, restart, and model swap. ### Step Six: Choose Your Approval Model and Give the Agent Its First Task Start in manual-approval mode. Have your agent prepare an order — market, side, size, price — and route it to you for a yes/no before it executes. For an agent placing a couple of positions a day, that adds about ten seconds per trade and buys you two weeks of watching how it actually reasons before you loosen anything. Automatic execution is a setting you graduate into, not one you start with. Make the first real task analysis, not trading. Ask your agent to pull a handful of active markets from Gamma, read the current odds and recent news, and write a short brief on which ones it thinks are mispriced and why. This costs nothing, exercises the read path end to end, and shows you how the agent thinks. When you do let it trade, start bounded: a single small position in one liquid, high-volume market, with the safety caps live. The worst case is a small, understood loss on a market you chose to enter. From that baseline you can expand into more interesting strategies — like [cross-platform arbitrage against Kalshi](/blog/automating-prediction-markets-arbitrage-with-openclaw) (and if you're still choosing between the two venues, [Polymarket vs Kalshi](/blog/polymarket-vs-kalshi) lays out the tradeoffs) — with evidence that the plumbing works. ## What Happens If Something Goes Wrong? Every responsible agentic system has to answer one question: when your agent does something you don't want, how fast can you stop it? For a Polymarket agent there are two independent levers, and you should know both. The first is at the credential level. Because your bot trades with L2 API credentials, you can revoke or rotate them, which cuts off its ability to place new orders without touching your underlying wallet. The second is the OpenClaw Direct kill switch: suspend or terminate the entire Instance from any browser, on any device. Suspending stops the agent immediately; terminating wipes the Instance (with the option to back up first). This is the heavier hammer, and it works even if you only have your phone. That platform-level revocation path, independent of Polymarket's own UI, is the single biggest operational reason to run a trading agent on a hosted Instance rather than locally. The harder question is what to do about positions that already filled. Onchain trades don't reverse — legally and technically, they're yours. Your options are the same as if you'd placed them by hand: hold to resolution, sell back into the order book at the current price, and then update your safety skill so the failure mode can't repeat. The rule we keep returning to, and the one the IMDA advisory we covered in [running OpenClaw responsibly](/blog/running-openclaw-responsibly-imda-advisory) makes at the platform level: don't fund the trading wallet with more than you can lose without rearranging your life. ## Frequently Asked Questions ### Can I run a Polymarket bot legally in the United States? US residents can only lawfully trade on Polymarket US, the CFTC-regulated market that launched December 3, 2025 with full KYC and USD settlement. The international onchain exchange with the open CLOB API has been geoblocked for US IPs since Polymarket's 2022 CFTC settlement, and using a VPN to reach it violates the platform's terms of service. ### Do I need to know how to code to set up an OpenClaw Polymarket agent? Not from scratch. The official Polymarket Agents framework is open source under an MIT license, and several community Polymarket MCP servers expose trading as ready-made agent tools. Your main jobs are funding a Polygon wallet with USDC, generating CLOB API credentials, and configuring the tools inside your OpenClaw Direct Instance with those credentials. ### Why does my funded wallet show no balance to the bot? Almost always because you funded your MetaMask address instead of your Polymarket proxy wallet. When you first trade on Polymarket, the platform deploys a proxy wallet — a Gnosis Safe you sign for — and your USDC and positions live there. Place one small trade in the web UI to deploy it, then point your bot at the funder address it reveals. ### Why run a Polymarket agent on OpenClaw Direct instead of my own machine? Prediction markets reprice around the clock, including overnight when your laptop is likely asleep. OpenClaw Direct runs your agent on a dedicated Instance at 99.9% uptime, stores your API credentials in an encrypted vault instead of a config file, and gives you a kill switch reachable from any browser. That keeps the agent online when the markets move and limits the blast radius if something goes wrong. ## Where to Go From Here The pieces are all in place. Polymarket publishes an open order book, the official Agents framework and community MCP servers make it callable by an AI agent, and the reasoning models that price a market are getting better every month. The remaining work — deciding which markets your agent should touch, how it should size positions, and how far to trust it — is the same judgment any trader has to build. The right way to build it is by watching your agent in small stakes for a few weeks before scaling anything. All of that depends on an agent that's actually online when a market moves. That's why we built [OpenClaw Direct](https://openclaw.direct): a dedicated Instance for every user, encrypted credential storage, 99.9% uptime, a dashboard kill switch reachable from any browser, and automatic platform updates so the infrastructure under your agent stays current without you maintaining it. Free trial credits come with every subscription — enough to wire up Polymarket end to end and watch a few trades fire. Ready to run your prediction-market agent? Start with OpenClaw Direct. Free trial credits included with every subscription. [Run OpenClaw Now](https://openclaw.direct/users/sign_up) Important disclaimer — please read **Educational content only, not financial advice.** This article is provided by OpenClaw Direct for general informational and educational purposes only. It is not, and must not be relied upon as, financial, investment, trading, legal, tax, or accounting advice, nor a recommendation, solicitation, or offer to buy, sell, or hold any security, event contract, derivative, cryptocurrency, or other instrument. It is general in nature and does not account for your personal circumstances, objectives, or financial situation. **No advisory relationship.** Reading this content, using our software, or contacting us does not create any advisor-client, broker-dealer, fiduciary, or other professional relationship. OpenClaw Direct is not a registered investment adviser, broker-dealer, futures commission merchant, or commodity trading advisor, and nothing here is personalized advice. **Substantial risk of loss.** Trading and investing — particularly in prediction markets, event contracts, derivatives, and cryptocurrencies — involve a high degree of risk and are not suitable for everyone. You can lose some, all, or (in leveraged positions) more than the capital you commit, so only ever risk money you can afford to lose entirely. Past performance is not indicative of future results, and no representation is made that any strategy, account, or bot will achieve profits or avoid losses. **Automated and AI-driven trading carries additional risk.** Trading bots and AI agents can and do fail. They may place erroneous, delayed, duplicated, or unintended orders; misread market data; behave unexpectedly during volatility or outages; or fail to execute at the expected time or price. If you configure or deploy any bot or agent based on this content, you do so entirely at your own risk and are solely responsible for monitoring it and for every order it places. **Do your own research and consult a professional.** Before making any financial decision or deploying any automated strategy, conduct your own independent research and consult a licensed financial advisor — and, where relevant, a legal or tax professional — about your specific situation. **Eligibility, jurisdiction, and legal compliance are your responsibility.** Prediction markets and event contracts are not legal or available everywhere; they are restricted or prohibited in certain jurisdictions and U.S. states, and their status keeps changing. Some platforms restrict access by residency (for example, Polymarket's international platform is not available to U.S. persons). You must be of legal age and eligible to trade, and it is solely your responsibility to determine whether your use of any platform, product, or strategy described here is lawful where you live and to comply with all applicable laws, regulations, and platform terms of service. **Limitation of liability.** To the maximum extent permitted by law, OpenClaw Direct, its affiliates, and its contributors accept no liability for any loss or damage — including any loss of capital or profits — arising directly or indirectly from your use of, or reliance on, this content or any tool, bot, or strategy described in it. You act on this information entirely at your own risk. * * * **Sources:** [Polymarket Documentation — Trading Overview](https://docs.polymarket.com/trading/overview), [Polymarket Agents Framework (GitHub)](https://github.com/Polymarket/agents), [Polymarket py-clob-client-v2 (GitHub)](https://github.com/Polymarket/py-clob-client-v2), [Polymarket Help Center — Geographic Restrictions](https://help.polymarket.com/en/articles/13364163-geographic-restrictions), and [Polymarket Documentation — Getting Started](https://docs.polymarket.com/market-makers/getting-started).