Every fill changes the inventory budget

A two-sided quote looks like a price decision. The first fill turns it into an inventory decision.

Polymarket's market-making guidance puts the accounting in plain view: every fill changes outcome-token exposure and the pUSD or tokens available for new orders.

Count exposure as the quote works

Before quoting, estimate the intended order sizes and confirm that the wallet has the required pUSD or outcome positions. During trading, track exposure by market and outcome rather than only watching the midpoint.

A bid that fills is not just a successful execution. It can change what the next sell needs, how much capital remains available, and how aggressively the other side should be priced.

Let inventory move the quote

The documented practice is to skew prices or sizes when one side of the inventory becomes imbalanced. The point is not to predict the next tick; it is to make the quote reflect the position already held.

Use size limits and price guards as separate checks. A quote can be close to the midpoint and still be too large for the remaining balance or too far from the current book.

Treat exits as a sequence

When the strategy stops, cancel the market's remaining orders, merge complete sets that are no longer needed, and deliberately retain or reduce any directional exposure. After resolution, confirm the market state before redeeming winning positions.

Each step answers a different question: what is still resting, what can be converted back to pUSD, and what value is actually available after the market resolves?

Keep incentives in their lane

Liquidity rewards and maker rebates may be available under separate eligibility and payout rules. They can be part of the economics, but they do not remove the inventory risk created by a fill.

The useful question is not whether a quote earned a spread or an incentive. It is whether the account still has the balances, limits, and exit plan needed for the next state.

Further reading: Market making · Positions and tokens · Fees.

Explore the markets: Open Polymarket (referral link).