Kalshi-Polymarket Cross-Exchange Arbitrage

This TypeScript bot monitors identical or highly correlated BTC 15-minute Up/Down markets on both Kalshi (a regulated prediction market platform) and Polymarket simultaneously. When a price discrepancy exceeds a configurable threshold (including transaction costs and latency), the bot places a buy on the cheaper exchange and a sell on the more expensive exchange, executing paired trades to capture the arbitrage spread. The bot manages settlement risk by ensuring both legs are executed in the same direction. It uses asynchronous I/O for low-latency scanning. This strategy depends on cross-exchange price divergence, which can occur due to differing user bases, liquidity, or reaction times to news. The bot is designed for sophisticated traders with accounts on both platforms.