Polymarket US Initiates Beta Testing for Parlay Contracts

Polymarket’s regulated US exchange has officially started testing parlay contracts, marking the next step in the prediction market’s path to multi-outcome trading. Up to 10 Legs in One Parlay The beta launch follows Polymarket US’s self-certification of its parlay product with the Commodity Futures Trading Commission in May. The contracts, known as Combinatorial Athletic Outcome Contracts (CAOCs), were not immediately made available to the wider public after that filing. Polymarket US processed its first parlay trade on August 5, with the test environment recording approximately $7.4 million in volume across 16,173 trades. Most of that activity took place in recent days. The activity comes as prediction markets increasingly compete in the parlay space. Polymarket’s US platform has been slower to introduce the product than its offshore blockchain-based platform, which began offering parlays in June during the FIFA World Cup. For now, the US product remains limited. The parlay option is not yet available through the Polymarket US app, and the company has not broadly launched its desktop platform. Instead, the recorded trades have taken place as part of the beta testing process. According to Polymarket US API documentation, users testing the product can currently combine as many as 10 legs in a single parlay. That is a more limited format than some competing prediction market products. The Request System Polymarket uses a request-for-quote system when pricing parlays. Traders must submit a request for market makers to price a particular combination. Participating market makers must respond within a specified period. The trader then has the option to accept the best available offer. The system is meant to enable prediction markets to price combinations of multiple outcomes, although casual users generally have access to the “yes” side of a parlay through the standard interface. The beta launch also comes as Kalshi prepares to introduce maker fees for its parlay contracts. According to the information provided, Kalshi’s maker fees are expected to follow its existing fee structure, with rates generally lower than taker fees. Parlays have already become a significant source of activity and fees for prediction markets. Kalshi reportedly generated $25 million in parlay taker fees during the first 16 days of August alone.