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Documentation Index

Fetch the complete documentation index at: https://rekko.ai/docs/llms.txt

Use this file to discover all available pages before exploring further.

import httpx

client = httpx.Client(base_url="https://api.rekko.ai/v1", headers={"Authorization": "Bearer YOUR_API_KEY"})
arbs = client.get("/arbitrage", params={"min_spread": 0.03}).json()
for opp in arbs["opportunities"]:
    print(f"{opp['event']} | Spread: {opp['spread_pct']:.1f}% | Cheaper on: {opp['cheaper_on']}")

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What this page covers

  • What prediction market arbitrage is and why it exists
  • How to calculate spreads and account for fees
  • Manual cross-platform scanning with Python
  • Automated scanning with the Rekko API
  • Execution risk and practical considerations
  • Real-time alerting via webhooks and SSE

​
What is prediction market arbitrage?

Prediction market arbitrage occurs when the same event is priced differently on two platforms. If Kalshi prices “Will the Fed cut rates?” at 62 cents YES and Polymarket prices the same event at 68 cents YES, you can buy YES on Kalshi at 62c and buy NO on Polymarket at 32c (1 - 0.68), locking in a 6-cent spread regardless of the outcome. This happens because Kalshi and Polymarket serve different audiences (regulated US traders vs global crypto traders), have different liquidity pools, and react to news at different speeds.

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Calculating the spread

The basic spread between two platforms: 
spread = abs(kalshi_yes_price - polymarket_yes_price)
spread_pct = spread * 100
A market with Kalshi YES at 0.62 and Polymarket YES at 0.68 has a 6% spread. You profit by buying on the cheaper side and selling on the expensive side.

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Accounting for fees

Raw spreads overstate the opportunity. You need to subtract fees from both sides:
PlatformMaker feeTaker fee
KalshiFree0.07 × price × (1 - price), max $0.0175
PolymarketVariesVaries, generally low
def kalshi_taker_fee(price: float) -> float:
    """Kalshi taker fee per contract (0-1 price scale)."""
    return min(0.07 * price * (1 - price), 0.0175)

def net_spread(kalshi_price: float, poly_price: float) -> float:
    """Net spread after fees on both sides."""
    raw_spread = abs(kalshi_price - poly_price)
    fee_kalshi = kalshi_taker_fee(min(kalshi_price, 1 - kalshi_price))
    fee_poly = 0.01  # Estimate for Polymarket
    return raw_spread - fee_kalshi - fee_poly
Only pursue opportunities where net_spread > 0.

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Manual approach: scanning both APIs

Without a unified API, you need to query both platforms, fuzzy-match events by title, and calculate spreads yourself: 
import httpx
from difflib import SequenceMatcher

# Fetch from both platforms
kalshi_resp = httpx.get("https://trading-api.kalshi.com/trade-api/v2/markets", params={"limit": 100})
kalshi_markets = kalshi_resp.json()["markets"]

poly_resp = httpx.get("https://gamma-api.polymarket.com/markets", params={"limit": 100, "active": True})
poly_markets = poly_resp.json()

# Fuzzy-match by title
matches = []
for km in kalshi_markets:
    for pm in poly_markets:
        similarity = SequenceMatcher(None, km["title"].lower(), pm["question"].lower()).ratio()
        if similarity > 0.6:
            k_yes = km["yes_bid"] / 100  # Kalshi prices in cents
            p_yes = float(pm["outcomePrices"][0]) if pm.get("outcomePrices") else None
            if p_yes is not None:
                spread = abs(k_yes - p_yes)
                if spread >= 0.02:
                    matches.append({
                        "event": km["title"],
                        "kalshi_yes": k_yes,
                        "poly_yes": p_yes,
                        "spread": spread,
                    })

matches.sort(key=lambda x: x["spread"], reverse=True)
for m in matches[:10]:
    print(f"{m['event']}")
    print(f"  Kalshi: {m['kalshi_yes']:.2f} | Poly: {m['poly_yes']:.2f} | Spread: {m['spread']:.1%}")
This approach has problems:
  • Fuzzy matching is unreliable — false positives and missed matches
  • Different title formats across platforms
  • Two separate authentication flows
  • No scoring or ranking of opportunities
  • Must be rebuilt every time either API changes

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Automated approach: Rekko arbitrage API

Rekko handles the cross-platform matching, spread calculation, fee accounting, and scoring: 
import httpx

client = httpx.Client(
    base_url="https://api.rekko.ai/v1",
    headers={"Authorization": "Bearer YOUR_API_KEY"},
)

# Cached scan (instant, refreshed periodically)
arbs = client.get("/arbitrage", params={"min_spread": 0.02}).json()

print(f"Found {arbs['count']} opportunities (scanned {arbs['scanned_at']})")
for opp in arbs["opportunities"]:
    print(f"\n{opp['event']}")
    print(f"  Kalshi: YES @ {opp['kalshi']['yes_price']:.2f}")
    print(f"  Polymarket: YES @ {opp['polymarket']['yes_price']:.2f}")
    print(f"  Spread: {opp['spread_pct']:.1f}% | Score: {opp['score']}")
    print(f"  Cheaper on: {opp['cheaper_on']}")

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Live scan

For the freshest data, use the live endpoint (takes 10-30 seconds): 
# Fresh scan — takes 10-30 seconds
live_arbs = client.get("/arbitrage/live", params={"min_spread": 0.03}).json()

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Scoring breakdown

Use ?expand=scoring to understand why an opportunity ranks high or low: 
arbs = client.get("/arbitrage", params={"min_spread": 0.02, "expand": "scoring"}).json()
for opp in arbs["opportunities"]:
    s = opp["scoring"]
    print(f"{opp['event']} — Overall: {opp['score']}")
    print(f"  Spread score (40%): {s['spread_score']}")
    print(f"  Liquidity score (20%): {s['liquidity_score']}")
    print(f"  Match confidence (20%): {s['match_confidence_score']}")
    print(f"  Execution score (20%): {s['execution_score']}")
Score componentWeightWhat it measures
Spread score40%Size of the price gap
Liquidity score20%Available depth on both sides
Match confidence20%How certain the event match is
Execution score20%Practical executability

​
Execution risk

Arbitrage in prediction markets is not risk-free. Key risks: Execution latency: Prices move while you place orders on two platforms. The spread can narrow or reverse before both legs fill. Liquidity gaps: The displayed price may not have enough depth for your desired size. Slippage on one leg erodes the spread. Settlement mismatch: Kalshi and Polymarket may resolve the same event differently due to different resolution sources or criteria. Capital lockup: Positions tie up capital until the market resolves, which can be weeks or months. The annualized return may be modest. Platform risk: Crypto-side positions carry smart contract risk. Regulatory-side positions carry compliance risk.

​
Mitigation strategies

  • Use Rekko’s execution_guidance endpoint to check spread depth before trading
  • Set a minimum net spread threshold (3-5% after fees) to absorb slippage
  • Start with smaller positions to test execution on both platforms
  • Prefer markets resolving within days rather than months for better capital efficiency

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Real-time alerting

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Webhooks

Register a webhook to get notified when new arbitrage opportunities appear: 
# Register a webhook for arbitrage events
webhook = client.post("/webhooks", json={
    "url": "https://your-server.com/webhook",
    "events": ["price_shift"],
    "secret": "your_hmac_secret",
}).json()
print(f"Webhook ID: {webhook['webhook_id']}")

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SSE streaming

For real-time, subscribe to the price shift stream: 
import httpx

with httpx.stream("GET", "https://api.rekko.ai/v1/stream",
    params={"events": "price_shift"},
    headers={"Authorization": "Bearer YOUR_API_KEY"},
) as response:
    for line in response.iter_lines():
        if line:
            event = json.loads(line)
            if event["type"] == "price_shift":
                print(f"Price move: {event['market_id']} — {event['old_yes']} → {event['new_yes']}")

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Complete arbitrage scanner

A runnable script that checks for arbitrage and reports findings: 
"""Prediction market arbitrage scanner using Rekko API."""
import httpx
import json
from datetime import datetime

API_KEY = "YOUR_API_KEY"

def scan_arbitrage(min_spread: float = 0.03) -> list:
    """Scan for cross-platform arbitrage opportunities."""
    client = httpx.Client(
        base_url="https://api.rekko.ai/v1",
        headers={"Authorization": f"Bearer {API_KEY}"},
        timeout=60.0,
    )

    arbs = client.get("/arbitrage", params={
        "min_spread": min_spread,
        "expand": "scoring",
    }).json()

    print(f"[{datetime.now():%H:%M}] Scanned — {arbs['count']} opportunities above {min_spread:.0%} spread\n")

    for opp in arbs["opportunities"]:
        kalshi_yes = opp["kalshi"]["yes_price"]
        poly_yes = opp["polymarket"]["yes_price"]
        print(f"  {opp['event']}")
        print(f"    Kalshi YES: {kalshi_yes:.2f} | Polymarket YES: {poly_yes:.2f}")
        print(f"    Spread: {opp['spread_pct']:.1f}% | Score: {opp['score']}")
        print(f"    Action: Buy YES on {opp['cheaper_on']}, buy NO on the other")
        print()

    return arbs["opportunities"]

if __name__ == "__main__":
    opportunities = scan_arbitrage(min_spread=0.03)
    if not opportunities:
        print("  No opportunities above threshold. Try lowering min_spread.")

​
What’s next

Build a trading bot

End-to-end bot with screening, analysis, and execution.

Kelly criterion sizing

Optimal position sizing for prediction market positions.

Webhooks and streaming

Real-time alerts for price shifts and new opportunities.

Arbitrage API reference

Full endpoint documentation for cached and live arbitrage.

Correlation analysis

Cross-market correlation for portfolio diversification.