In an arbitrage between Kalshi and Polymarket, the Polymarket leg only turns into cash when the market resolves and the winning position is redeemed. This article summarises what Polymarket's documentation says about resolution, redeeming and merging. It is not trading advice, and the details can change, so check the current documentation.
After resolution
Polymarket's Resolution page says that once a market resolves, trading stops, winning tokens become redeemable for $1.00 each and losing tokens become worthless ($0.00). The Positions and Tokens page gives the same picture for Yes and No positions: the winning side is worth $1 each, the other $0, and its example turns 100 winning positions into 100 pUSD.
Redeem
The Manage Positions page documents a redeem function that takes a condition ID, an outcome index and an amount. Redeeming is the step that converts a winning position into collateral; until then the value sits in the token.
Merge
Merging is the reverse of splitting: equal amounts of YES and NO tokens can be merged back into collateral, with the documentation's example of 100 YES plus 100 NO returning 100 pUSD. It is relevant to the complete-set idea in complete-set arbitrage, where you hold both sides of the same market. In a cross-platform pair you hold YES on one platform and NO on the other, so there is nothing to merge; you wait for both to resolve.
What it means for a cross-platform pair
Your capital returns when each leg settles, and the slower leg sets when you can reuse the money; see capital lockup and the Kalshi side in the lifecycle article. If the two markets resolve differently, one of the legs pays $0 and the locked-in profit does not materialise, so the resolution rules matter as much as the price.
Where Arbitrage Agent fits
Arbitrage Agent matches markets across Kalshi and Polymarket, checks the resolution rules on both sides, and shows the result in a live feed with a step-by-step guide for both legs. You place the orders yourself, and the final check of the details is still yours. See the plans or start with the Starter plan.
Related articles
- Complete-Set Arbitrage on Polymarket
- Capital Lockup and Settlement Time
- Polymarket UMA Disputes and Resolution Mismatch
- Polymarket API Guide
Key terms: Resolution Risk · Complement Arbitrage