How it Works

Understand what happens behind the scenes when you place an Up or Down trade.

The Core Idea

Polyscout is designed to let you trade prediction markets directly inside Telegram while the backend handles all the complexity. This section breaks down how the system works end to end: from the wallet you receive at onboarding, to how trades move through Polymarket’s infrastructure, to how fees and referrals are handled behind the scenes.

The Foundation: Polygon and USDC.e

Polyscout operates on the Polygon network because Polymarket settles trades there. Every trade, payout, and fee is denominated in USDC.e, which is the bridged version of USDC commonly used across Polygon.

To fund your trading wallet, you need to send USDC.e on Polygon. If your funds live on another chain or exchange, you can bridge them using tools like:

• Official Polygon Bridge: https://bridge.wallet.polygon.technology

• LI.FI Bridge: https://www.lifi.io/

• Polymarket’s help docs: https://help.polymarket.com

Once the USDC.e arrives, it is immediately available for trading inside Polyscout.

Wallet Creation and Control

When you start using the bot, Polyscout creates a dedicated trading wallet tied to your Telegram account. You do not need to set anything up manually.

This wallet lives on chain and is controlled by the backend so it can execute automated trades the moment you confirm them in Telegram. You remain the owner of the wallet, and you can look up every transaction on Polygonscan.

The bot stores the signing keys securely and uses them only to execute actions you approve through Telegram, such as placing trades or withdrawing referral rewards. This setup lets the system trade fast and reliably while keeping everything transparent on chain.

Telegram as the Trading Interface

Telegram is your front end. It handles:

• Trade selection

• Stake entry

• Balance checks

• Referral link access

• Reward withdrawals

All your commands flow into Polyscout’s backend engine, which handles the rest. You do not interact directly with Polymarket or any blockchain interface. The bot does that on your behalf.

The Backend Engine and Real-Time Market Data

Once you communicate a trade to the bot, the backend steps in. It stays connected to Polymarket through a mix of APIs and websocket feeds so it can track markets in real time.

The backend uses:

• Polymarket’s central limit order book (CLOB)

• Their REST trading API for submitting orders

• Websocket streams for constant odds and liquidity updates

• Polymarket’s gasless relayer for on chain settlement

This live connection allows Polyscout to see the current order book, mid price, liquidity levels, and any changes happening in milliseconds. It means when you hit “Up” or “Down,” the order is built using the freshest market data available.

What Happens When You Place a Trade

Here is what happens behind the scenes from the moment you confirm a trade:

Step 1: The bot validates your balance

The backend checks your USDC.e balance in your trading wallet to make sure the stake is available.

Step 2: The engine pulls the latest odds

Using Polymarket’s websocket feed, the system fetches the exact price for the outcome you picked. This includes checking the best bid, best ask, and any expected slippage.

Step 3: The order is built

The backend constructs a valid CLOB order for the Polymarket market you chose. It includes the outcome (Up or Down), your stake, price parameters, and risk controls.

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

As Polymarket matches your order, fills are pushed back to Polyscout through the websocket feed. The bot updates your balance and position instantly.

Step 6: Settlement and payouts

When the market resolves, Polymarket settles the winning outcome on chain. Your wallet receives the resulting USDC.e and Polyscout records the profit so it can apply any fee or referral sharing.

Everything stays inside Polymarket’s settlement layer, so you can validate activity directly on Polygonscan.

Fees and How They Are Applied

Polyscout uses a performance-based fee model. It only charges a fee when you win a trade, and the fee is always one percent of the winning amount.

If your trade loses, no fee is applied.

When a trade wins, the one percent fee is automatically deducted from your payout. How that fee is split depends on whether you joined through a referral link. The fee stays the same for every trader, but the revenue split differs behind the scenes.

Referral Program and Reward Tracking

Every user gets a unique referral link. When someone signs up through your link, you start earning rewards from their winning trades.

Here is the breakdown:

• Your referral earns you half of the trading fee collected from that user.

• Since the trading fee is 1% of a winning amount, you get 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 one percent because there is no referrer to reward.

Your referral earnings accumulate in a separate reward balance tied to your user ID. You can check it through the /balance command and withdraw it at any time using /withdraw. The backend then sends your USDC.e to your wallet on Polygon through the relayer system.

This gives every user a way to earn passive income just by promoting the bot.

Transparency and Security

All trades, deposits, rewards, and withdrawals happen on the blockchain. You can verify everything by pasting your wallet address into Polygonscan.

Polyscout’s backend controls the wallets only for automated execution, but you always see exactly what is happening. The system relies entirely on Polymarket’s infrastructure for pricing data, order execution, and settlement, which keeps everything transparent and decentralized.