# About Arbitrage Agent

> Built by a trader who got tired of watching spreads close before he could trade them.

## Founder

**Alex Mercer** — Founder & Developer. Arbitrage Agent is a one-person project. It started as a personal tool: the same event priced differently on Polymarket and Kalshi, and no off-the-shelf software that handled cross-platform event matching accurately enough to be trusted with real capital.

The first version matched markets with a simple embedding similarity threshold. After too many false positives, the current approach adds a custom reranker and resolution-criteria diffing layer. Today it runs with every pair validated before going live across thousands of matched pairs.

X / Twitter: https://x.com/ArbitrageAgent

## Key Metrics

- **thousands of markets** — Markets monitored
- **100%** — Pairs validated before going live
- **24/7** — Continuous market scanning
- **0%** — Take on your P&L

## Non-Custodial Architecture

Your capital stays on-venue. Arbitrage Agent never holds your funds. Capital stays in your Kalshi and Polymarket accounts at all times. The agent connects via API keys with read + trade permissions only — no withdrawal access, ever.

You can revoke API key access at any time from your Kalshi or Polymarket account settings. There is no lock-in and no custody risk.

## Security Model

**The agent CAN:**
- Read market data and prices
- Place buy and sell orders
- Check account balances and positions
- Cancel open orders

**The agent CANNOT:**
- Withdraw funds from your accounts
- Transfer assets to other wallets or accounts
- Change your account settings or security
- Access your personal information

## Risk Controls

- **Circuit breaker** (automated execution engine, in final testing) — If one leg of a trade fails to fill, the other is automatically unwound. Always both-or-neither.
- **Kelly criterion sizing** — Position sizes calculated using the Kelly criterion, optimising for long-term growth while limiting drawdown risk.
- **Kill switch** — Stop the agent with one click from the dashboard.
- **Dry-run mode** — Test the full system with paper trades before committing real capital.

## How AI Matching Works

Polymarket and Kalshi list the same events under completely different titles. Simple text matching fails — "Fed cuts rates in May FOMC" and "Will the Federal Reserve cut at May FOMC?" are the same event with zero keyword overlap.

Arbitrage Agent uses OpenAI embeddings combined with a custom reranker to semantically match events across platforms. This approach — with every pair validated before it goes live — links events across thousands of monitored markets that text-based systems miss entirely.

## Links

- Homepage: https://arbitrage-agent.com
- How it works: https://arbitrage-agent.com/how-it-works.md
- Pricing: https://arbitrage-agent.com/pricing.md
- Full LLM context: https://arbitrage-agent.com/llms-full.txt