Arbitrage Scanner for Polymarket Multi-Outcome Markets

This production-grade Python asyncio bot scans Polymarket for arbitrage opportunities in multi-outcome markets, particularly NegRisk structured contracts. It identifies mispriced outcomes where the sum of probabilities is less than 1, allowing a hedged bet that locks in profit regardless of the event's result. Entry is automated when an arbitrage spread exceeds a configurable threshold (e.g., 2%). Exit occurs naturally when the event resolves, or the bot can trade out early if spreads normalize. The repo (matthewnyc2/arbitrage) includes 60 passing tests, paper-trading mode, and a live browser demo. It uses the CLOB API for order book data and executes limit orders to capture spreads. Implementation requires Python 3.10+, asyncio, and a Polymarket API key. Risk is low because trades are hedged, but execution speed matters as spreads vanish quickly.