GUIDE · LUNARSHADOW AI · UPDATED
Are prediction market bots allowed?
What to check first.
Both Kalshi and Polymarket publish trading APIs, so automated trading is an expected way to use them. The rules about who can trade, and how, still apply to a bot exactly as they apply to you.
The short answer
Kalshi and Polymarket both offer APIs built for placing orders from software, and they document them publicly. Using a bot is not a loophole; it is a supported way to trade. What a bot cannot do is change whether you are eligible to trade, or excuse trading that breaks a venue's rules.
On Kalshi
Kalshi is a CFTC-regulated exchange. You trade through your own verified account, and API keys come from your account profile. Orders placed with your key are your orders: you are responsible for what your bot does, including keeping within Kalshi's terms and its API rate limits. See Kalshi's API documentation and help center.
On Polymarket
Polymarket's international exchange publishes its own trading API, and it restricts access from a list of countries, including the United States. A bot does not change where you are allowed to trade, and using tools to get around Polymarket's geographic restrictions breaks its terms. Polymarket's separate US app has its own rules.
Rules that apply to everyone
- Eligibility. Each venue decides who can open an account and from where.
- Fair trading. Exchanges prohibit manipulation, such as trading with yourself to fake activity, whether by hand or by bot.
- State rules. Some US states dispute prediction markets, so access can change.
- Taxes. Trading gains can be taxable. Keep records and ask a tax professional.
Before you automate
Confirm you are eligible on the venue you plan to use, read its terms, keep API keys private, and start with small sizes and a daily loss limit.
LunarShadow AI runs hosted bots on Kalshi and Polymarket through each venue's own interfaces. It does not remove any venue's restrictions. This page is general information, not legal or tax advice.