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Wallet Setup Guide

Prerequisites

  • Polygon (MATIC) network access
  • USDC on Polygon
  • Private key security practices

Step 1: Create Polygon Wallet

Option A: MetaMask

  1. Install MetaMask browser extension
  2. Create new wallet or import existing
  3. Add Polygon network:

Option B: Python Script

from eth_account import Account
import secrets

# Generate new account
priv = secrets.token_hex(32)
private_key = "0x" + priv
account = Account.from_key(private_key)

print(f"Address: {account.address}")
print(f"Private Key: {private_key}")

# IMPORTANT: Store private key securely!
# Never commit to git or share publicly

Step 2: Fund Wallet with USDC

Get USDC on Polygon

  1. Bridge from Ethereum:

  2. Buy directly:

    • Buy on exchange (Kraken, Coinbase, etc.)
    • Withdraw to Polygon network
    • Ensure you select "Polygon" not "Ethereum"

  3. Swap on Polygon:

    • Buy MATIC on exchange
    • Use QuickSwap or Uniswap on Polygon
    • Swap MATIC → USDC

Initial Funding Recommendations

Phase USDC Amount Purpose
Testing $100 Verify everything works
Paper Trading $0 No real funds needed
Micro Live $500 Initial live trades
Small Live $2,000 Full exposure
Scaling $5,000+ After validation

Step 3: Configure Environment

Create .env file

# NEVER commit this file to git!
POLYGON_PRIVATE_KEY="0x..."
OPENAI_API_KEY="sk-..." # Optional, for AI features

Security Checklist

  • Private key stored only in .env file
  • .env added to .gitignore
  • Backup private key in secure location (password manager, hardware wallet)
  • Never share private key
  • Consider using hardware wallet for large amounts

Step 4: Test Wallet Connection

import os
from eth_account import Account
from web3 import Web3

# Load private key (supports both variable names)
private_key = os.getenv("POLYGON_PRIVATE_KEY") or os.getenv("POLYGON_WALLET_PRIVATE_KEY")
account = Account.from_key(private_key)

# Connect to Polygon
w3 = Web3(Web3.HTTPProvider('https://polygon-rpc.com'))

# Check connection
print(f"Connected: {w3.is_connected()}")
print(f"Address: {account.address}")

# Check USDC balance
USDC_ADDRESS = "0x2791Bca1f2de4661ED88A30C99A7a9449Aa84174"  # Polygon USDC
balance = w3.eth.get_balance(account.address)
print(f"MATIC balance: {w3.from_wei(balance, 'ether')} MATIC")

Step 5: Verify Polymarket Access

Test Order Signing

# This verifies you can sign orders for Polymarket
from polymarket_agents import Polymarket

pm = Polymarket(private_key)
print("✅ Polymarket client initialized")

Step 6: Start with Paper Trading

Do NOT go live immediately!

  1. Run paper trading for at least 30 days
  2. Validate strategy performance
  3. Check all metrics:
    • Win rate > 55%
    • Sharpe ratio > 1.0
    • Max drawdown < 20%

Step 7: Go Live (When Ready)

Week 1-2: Micro Positions

# config/trading.yaml
risk:
  max_position_usd: 100
  max_total_exposure_usd: 300
  max_positions: 3

Monitor hourly. Verify:

  • Orders execute correctly
  • P&L tracking works
  • Risk limits enforced

Week 3-4: Small Positions

risk:
  max_position_usd: 250
  max_total_exposure_usd: 750
  max_positions: 5

Monitor daily. Track:

  • Execution quality
  • Slippage
  • Performance vs paper trading

Week 5+: Full Positions

risk:
  max_position_usd: 500
  max_total_exposure_usd: 2000
  max_positions: 10

Security Best Practices

Private Key Storage

  1. Environment variables (Development):

    export POLYGON_PRIVATE_KEY="0x..."

  2. Encrypted file (Production):

    # Encrypt private key
gpg -c .env

# Decrypt when needed
gpg -d .env.gpg > .env

  3. Hardware wallet (Large amounts):

    • Use Ledger or Trezor
    • Sign transactions on device
    • Never expose private key to computer

Wallet Hygiene

  • Separate hot wallet for trading
  • Cold wallet for long-term storage
  • Regular security audits
  • Monitor for unauthorized transactions
  • Enable 2FA on all exchanges

Emergency Procedures

Compromised Private Key

  1. Immediately:

    python scripts/emergency_stop.py

  2. Transfer remaining USDC to new wallet:

    # Emergency transfer script
from web3 import Web3
# Transfer all USDC to safe wallet

  3. Rotate all credentials

  4. Audit transaction history

Lost Private Key

  • Restore from secure backup
  • If no backup: funds are lost forever
  • This is why backups are critical!

Monitoring

Daily Checks

  • Check wallet balance
  • Review recent transactions on Polygonscan
  • Verify no unexpected trades
  • Check dashboard for alerts

Weekly Reviews

  • Performance vs benchmarks
  • Risk metrics within limits
  • No security incidents
  • Backup verification

Support

For issues:

  1. Check logs: logs/trading.log
  2. Check database: sqlite3 data/trades.db
  3. Emergency stop: python scripts/emergency_stop.py

Never share your private key for support!