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Engineering
Understanding Polymarket CLOB Liquidity & Slippage Safeguards
How limit price caps and Fill-and-Kill (FAK) order types prevent bad fills during fast-moving market events.
PolyPilot EngineeringTrading Infrastructure6 min read
Slippage is the difference between the price a whale traded at and the price your order fills at. On fast-moving prediction markets, controlling slippage is essential for long-term profitability.
How PolyPilot Protects Your Capital
- Real-Time Order Book Sampling: Before any order is placed, PolyPilot queries the live order book depth.
- Drift Calculation: If current ask price exceeds the leader's entry price by more than your max slippage limit (default 5%), the trade is automatically BLOCKED.
- Fill-and-Kill (FAK) Orders: Orders are submitted as FAK limit orders. They instantly fill whatever liquidity exists at or better than your limit price, and cancel any unfilled remainder. Nothing rests in the book.
Setting Optimal Parameters
- Max Slippage %: Keep between 2% and 5% for tight execution.
- Default Copy Amount: Scale your order size to match market depth.