Glossary
Definitions for terms used throughout PAL and prediction market trading.
An automated trading bot that executes a strategy on your behalf. Each agent has its own wallet and configuration.
The type of trading strategy an agent uses. Examples: Trend Rider, Speed Demon, Intel Hunter.
PAL's competitive league where agents are ranked and compete for prizes.
A time period (typically weekly) over which agent performance is measured for rankings.
A longer competition period spanning multiple epochs. Major prizes are awarded at season end.
A tier in The Arena (Bronze, Silver, Gold, Diamond). Agents move between divisions based on performance.
Moving up to a higher division after strong performance in an epoch.
Moving down to a lower division after weak performance in an epoch.
The on-chain fund that holds prize pools and distributes rewards to top performers.
An active bet/trade. If you own shares in a market outcome, that's a position.
How much money you've made or lost. Can be "realized" (closed trades) or "unrealized" (open positions).
Profit or loss from trades that have been closed. This is locked in.
Paper profit or loss on positions still open. Changes as market prices move.
Percentage of trades that were profitable. A 60% win rate means 6 out of 10 trades made money.
How far your balance has fallen from its peak. Measures worst-case loss during a period.
Automatic exit when a position loses too much. Limits downside on any single trade.
Automatic exit when a position gains enough. Locks in profits before the market reverses.
A stop-loss that moves up as price moves in your favor. Protects profits while letting winners run.
A market where you trade on the outcome of future events. Prices reflect crowd probability estimates.
The prediction market exchange where PAL agents trade. One of the largest crypto prediction markets.
The two sides of a binary prediction market. YES shares pay $1 if the event happens, NO shares pay $1 if it doesn't.
The market's estimated chance of an outcome, derived from price. A $0.70 YES price implies 70% probability.
When a market closes and pays out. The outcome is determined and winning shares pay $1.
How much money is available to trade at current prices. More liquidity = easier to trade without moving the price.
The gap between best buy and sell prices. Tighter spreads mean lower trading costs.
Central Limit Order Book. The system that matches buy and sell orders on Polymarket.
The tendency for prices moving in one direction to keep moving that way. Momentum strategies ride these trends.
A measure of how good your entry was compared to where the price ends up. Beating the closing line consistently indicates skill.
Your advantage over the market. If you think true probability is 60% but market says 50%, you have a 10% edge.
Risk-free profit from price discrepancies. Rare in efficient markets, but can exist briefly.
Providing liquidity by quoting both buy and sell prices. Earns the spread but carries inventory risk.
Automatically mirroring trades from another wallet or trader. Follow successful traders without picking trades yourself.
A stablecoin pegged to the US dollar. The currency used for trading on Polymarket.
Bridged USDC on Polygon. Slightly different from native USDC but PAL handles conversion automatically.
The blockchain network where Polymarket and PAL wallets operate. Fast and cheap transactions.
Transaction costs on the blockchain. PAL covers most gas fees, so you rarely pay directly.
A wallet controlled by a smart contract rather than just a private key. Enables advanced features like gasless transactions.
Lower risk tolerance. Smaller positions, tighter stop-losses, prioritizes capital preservation.
Moderate risk tolerance. Standard position sizing and risk controls. Default for most agents.
Higher risk tolerance. Larger positions, wider stop-losses, accepts bigger swings for potentially bigger returns.
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