How it Works
Understand what happens behind the scenes when Polyscout executes an Up or Down trade.
The Core Idea
Polyscout is built to let you trade prediction markets directly inside Telegram while the backend handles all the complexity.
Telegram acts as the control layer where you create strategies, receive updates, and manage your account. Behind the scenes, Polyscout connects directly to Polymarket’s infrastructure to fetch live market data, build orders, execute trades, and settle results on chain.
From your perspective, everything feels simple. Under the hood, the system is doing a lot of work to make that simplicity possible.
The Foundation: Polygon and USDC.e
Polyscout operates on the Polygon network because Polymarket settles all prediction markets there.
Every trade, payout, and fee is denominated in USDCe, which is the bridged version of USDC used across Polygon. This is why your trading wallet must be funded with USDCe before placing any trades. Once USDCe arrives in your Safe Wallet, it is immediately available for trading inside Polyscout.
Wallet Creation and Control
When you start the bot, Polyscout creates a dedicated trading wallet tied to your Telegram account.
This setup uses two wallets:
An owner wallet that belongs to you
A Safe Wallet that executes trades on Polymarket
The Safe Wallet is a smart contract wallet used by Polymarket to place orders through their system. Polyscout links this Safe Wallet to your owner wallet automatically during onboarding.
You remain the owner of the wallet at all times. Every transaction is on chain and can be viewed on Polygonscan. Polyscout only uses the wallet to execute actions you explicitly approve through Telegram, such as placing trades or withdrawing rewards.
Telegram as the Trading Interface
Telegram is your front end. It is where you:
Build and manage your strategies
Receive trade and status notifications
Check wallet balances
Access referral links
Withdraw funds
Every command you send flows into our backend engine. You never interact directly with Polymarket’s interface or blockchain tooling. The bot handles all execution on your behalf.
The Backend Engine and Real-Time Market Data
Once you communicate a trade or strategy to the bot, the backend takes over.
Polyscout stays continuously connected to Polymarket through a combination of APIs and websocket feeds so it can track markets in real time. This connection is always on. It is watching price movements, liquidity changes, and market conditions for you so you do not have to sit there staring at charts.
Under the hood, the backend uses several core components from Polymarket:
The central limit order book (CLOB) to see live bids and asks
The REST trading API to submit and manage orders
Websocket streams for constant odds and liquidity updates
Polymarket’s gasless relayer for on chain settlement
Because of this live connection, Polyscout can see the full order book, the current mid price, available liquidity, and any changes happening in milliseconds. Your strategy conditions are evaluated against this data continuously. When your rules are met, the order is executed immediately. You do not need to babysit charts or manually time entries. The bot is doing that work for you in real time.
What Happens When You Place a Trade
Here is what happens behind the scenes from the moment you confirm a trade or a strategy triggers.
Step 1: The engine pulls the latest odds
Using Polymarket’s websocket feeds, the system fetches the exact price for the outcome you selected. This includes checking the best bid, best ask, and any expected slippage based on current liquidity.
Step 2: The order is built
The backend constructs a valid CLOB order for the specific Polymarket market you chose. This includes the outcome (Up or Down), your trade size, price parameters, and any risk controls tied to the strategy.
Step 3: The bot validates your balance
Before submitting the order, the backend checks your USDCe balance to confirm there is enough available to place the trade. If this condition is not met, the strategy is automatically stopped and you are notified so you can take action instead of silently failing.
Step 4: The order is submitted
The order goes through Polymarket’s CLOB API and settles through their relayer system. The relayer makes the transaction gasless, so you do not pay gas fees for trading.
Step 5: Fills stream back in real time
As the order is matched on Polymarket, fills are streamed back to Polyscout through the websocket connection. Your balance and open positions update immediately inside the bot.
Step 6: Settlement and payouts
When the market resolves, Polymarket settles the winning outcome on chain. Your wallet receives the resulting USDCe and Polyscout records the result so it can apply any fees or referral rewards correctly.
All of this happens inside Polymarket’s settlement layer, which means you can validate every action directly on Polygonscan.
In the event a market enters a dispute window and a position is temporarily unclaimable, the bot handles this automatically. You will see the position remain open in your stats and you will be notified when the dispute window closes and claims reopen. At that point, you can use the /claim_all command to attempt to claim all open positions at once.
Fees and How They Are Applied
Polyscout uses a simple performance-based fee model. A fee is only charged when you win a trade. The fee is always 1% of the winning amount. If a trade loses, no fee is applied.
When a trade wins, the 1 % fee is automatically deducted from the payout before funds settle into your wallet. The fee structure is the same for every user. What changes is how that fee is split depending on referrals.
If you joined Polyscout through a referral link, the fee is split evenly. Half goes to the project and half goes to the referrer. If you joined without a referral, Polyscout keeps the full one percent because there is no referrer attached to the account.
Referral Program and Reward Tracking
Every user receives a unique referral link tied to their Telegram account.
When someone signs up using your link, you start earning rewards from their winning trades. The math stays simple:
The trading fee is 1% on winning trades.
You receive half of that, which is 0.5%.
Polyscout keeps the remaining 0.5%.
If a user joins without a referral link, Polyscout keeps the full fee.
Referral rewards accumulate in a separate reward balance tied to your user ID. You can check this balance using the /referrals command and withdraw it at any time using /withdraw. When you withdraw, the backend sends your USDCe directly to your wallet on Polygon through the relayer system.
This gives every user a way to earn passive income simply by sharing the bot.
Transparency and Security
All trades, deposits, rewards, and withdrawals happen on chain. You can verify everything by pasting your wallet address into Polygonscan and reviewing transactions directly. There is no hidden accounting and no off-chain settlement.
Polyscout’s backend controls wallets only for automated execution. You always retain ownership of your funds. You can import your wallet into any decentralized wallet application such as Phantom and manage it like any other crypto wallet.
Once your wallet is connected to Phantom, you can also connect it directly to the Polymarket web interface. This gives you full visibility into your positions, trade history, and claims directly through Polymarket if you choose to use it.
And this part matters enough to say clearly: Your private key is the keys to the house. Anyone who has it can sign transactions, move funds, and take full control of the wallet. Polyscout will never ask for it, support will never need it, and no legitimate process requires sharing it. Treat it like cash. Store it securely. If it leaks, the wallet is compromised.
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