Configuration

Complete guide to configuring MoltMarket for your trading strategy.

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Configuration File

MoltMarket uses a YAML configuration file located at ~/.moltmarket/config.yaml.

Full Configuration Example

# Platform Credentials
platforms:
  polymarket:
    enabled: true
    api_key: ${POLYMARKET_API_KEY}
    wallet_address: "0x742d35Cc6634C0532925a3b844Bc9e7595f0bEb"
    private_key_path: ~/.moltmarket/polygon.key
    network: polygon
    rpc_url: https://polygon-rpc.com

  kalshi:
    enabled: true
    api_key: ${KALSHI_API_KEY}
    api_secret: ${KALSHI_API_SECRET}
    email: [email protected]
    demo: false
    api_url: https://trading-api.kalshi.com

# Security Settings
security:
  # Position limits
  max_position_size: 1000        # USD per trade
  max_total_exposure: 10000      # Total across all positions
  max_daily_loss: 5000           # Max loss per day

  # Approval thresholds
  require_approval_above: 1000   # Trades > $1000 need Ledger
  auto_approve_below: 100        # Trades < $100 auto-execute

  # Session key settings
  session_key_expiry: 86400      # 24 hours in seconds
  session_key_rotation: true     # Auto-rotate daily

  # Hardware wallet
  ledger:
    enabled: true
    derivation_path: "44'/60'/0'/0/0"
    timeout: 120                 # Approval timeout in seconds

# Risk Management
risk:
  # Stop-loss and take-profit defaults
  default_stop_loss: 0.35        # Close at 35% probability
  default_take_profit: 0.65      # Close at 65% probability

  # Portfolio limits
  max_open_positions: 20
  max_concentration: 0.30        # Max 30% in single market
  max_category_exposure: 0.50    # Max 50% in one category

  # Slippage
  default_slippage_tolerance: 0.01  # 1%
  max_slippage: 0.05                # 5% maximum

# Logging
logging:
  level: info                    # debug, info, warn, error
  console_output: true
  file_output: true
  log_path: ~/.moltmarket/logs/moltmarket.log

  # Audit logging (compliance)
  audit_enabled: true
  audit_path: ~/.moltmarket/audit.log
  audit_retention_days: 365

# Performance
performance:
  # Caching
  cache_enabled: true
  cache_market_data_seconds: 30
  cache_orderbook_seconds: 5

  # API rate limiting
  polymarket_requests_per_second: 10
  kalshi_requests_per_minute: 100

  # Timeouts
  api_timeout_seconds: 10
  trade_confirmation_timeout: 30

# Notifications (optional)
notifications:
  enabled: false
  email:
    enabled: false
    smtp_host: smtp.gmail.com
    smtp_port: 587
    from_address: [email protected]
    to_addresses:
      - [email protected]
  telegram:
    enabled: false
    bot_token: ${TELEGRAM_BOT_TOKEN}
    chat_id: ${TELEGRAM_CHAT_ID}
  discord:
    enabled: false
    webhook_url: ${DISCORD_WEBHOOK_URL}

# Advanced
advanced:
  # Multi-agent coordination
  enable_multi_agent: false
  agent_coordination_port: 3402

  # Backtesting
  backtesting_mode: false
  backtest_data_path: ~/.moltmarket/backtest/

  # Smart contract guardrails (Polymarket only)
  smart_contract_guardrail:
    enabled: false
    contract_address: "0x..."
    deploy_on_start: false

---

Environment Variables

Sensitive credentials should be stored as environment variables:

Required Variables

# Polymarket
export POLYMARKET_API_KEY="your_api_key_here"

# Kalshi
export KALSHI_API_KEY="your_api_key_here"
export KALSHI_API_SECRET="your_api_secret_here"

Optional Variables

# Notification services
export TELEGRAM_BOT_TOKEN="123456:ABC-DEF..."
export TELEGRAM_CHAT_ID="123456789"
export DISCORD_WEBHOOK_URL="https://discord.com/api/webhooks/..."

# Custom RPC endpoints
export POLYGON_RPC_URL="https://polygon-mainnet.infura.io/v3/YOUR-PROJECT-ID"

Loading Environment Variables

Add to ~/.bashrc or ~/.zshrc:

# MoltMarket Configuration
export POLYMARKET_API_KEY="..."
export KALSHI_API_KEY="..."
export KALSHI_API_SECRET="..."

# Load on shell start
source ~/.moltmarket/env.sh

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Security Configuration

Position Size Limits

security:
  max_position_size: 1000      # Maximum USD per trade
  max_total_exposure: 10000    # Total across all positions

Recommendation:

• Start with 10% of total capital as max_position_size

• Set max_total_exposure to 80-90% of capital (keep reserve for fees)

Daily Loss Limits

security:
  max_daily_loss: 5000         # Stop trading after $5000 loss

Behavior:

• Tracks realized + unrealized losses

• Resets at midnight UTC

• Blocks all new positions when limit hit

Approval Thresholds

security:
  auto_approve_below: 100      # Trades < $100: automatic
  require_approval_above: 1000 # Trades >= $1000: Ledger required

Workflow:

Trade < $100          → Auto-execute with session key
$100 <= Trade < $1000 → Notify user, auto-execute
Trade >= $1000        → Require Ledger approval

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Risk Management Configuration

Stop-Loss and Take-Profit

risk:
  default_stop_loss: 0.35      # Close if probability reaches 35%
  default_take_profit: 0.65    # Close if probability reaches 65%

Example:

# Opens position with configured defaults
agent.run("Buy $500 YES on election market")

# Position auto-closes when:
# - Price reaches 35% (stop-loss), OR
# - Price reaches 65% (take-profit)

Portfolio Concentration

risk:
  max_concentration: 0.30      # Max 30% in single market
  max_category_exposure: 0.50  # Max 50% in one category

Validation:

# Before opening position
current_market_exposure = 2000  # $2000 in this market
total_portfolio = 10000         # $10000 total
new_position = 1500             # Want to add $1500

concentration = (2000 + 1500) / 10000 = 0.35  # 35%

if concentration > 0.30:
    reject_trade("Concentration limit exceeded")

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Platform Configuration

Polymarket

platforms:
  polymarket:
    enabled: true
    network: polygon              # polygon or polygon-mumbai (testnet)
    rpc_url: https://polygon-rpc.com
    gas_price_gwei: auto          # or fixed number (e.g., 50)

Network Options:

• polygon: Production (mainnet)

• polygon-mumbai: Testnet

Kalshi

platforms:
  kalshi:
    enabled: true
    demo: false                   # Set true for demo environment
    api_url: https://trading-api.kalshi.com

Demo Mode:

# For testing without real money
kalshi:
  demo: true
  api_url: https://demo.kalshi.com/trade-api/v2

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Logging Configuration

Log Levels

logging:
  level: info    # debug, info, warn, error

Level Descriptions:

• debug: All events including API calls

• info: Important events (trades, errors)

• warn: Warnings and anomalies

• error: Errors only

Audit Logging

logging:
  audit_enabled: true
  audit_path: ~/.moltmarket/audit.log
  audit_retention_days: 365

Audit Log Format:

{
  "timestamp": "2026-03-19T14:30:00Z",
  "event": "position_opened",
  "agent_id": "market_analyst",
  "user_id": "user_123",
  "platform": "polymarket",
  "market_id": "0x1a2b...",
  "side": "YES",
  "amount": 500,
  "avg_price": 0.47,
  "transaction_hash": "0x5d6e...",
  "intent": "Buy $500 YES on presidential election"
}

---

Performance Tuning

Caching

performance:
  cache_enabled: true
  cache_market_data_seconds: 30
  cache_orderbook_seconds: 5

Benefits:

• Reduces API calls by 70-80%

• Faster market searches

• Lower rate limit usage

Trade-offs:

• Market data may be stale (up to 30s old)

• Not recommended for high-frequency trading

API Rate Limits

performance:
  polymarket_requests_per_second: 10
  kalshi_requests_per_minute: 100

Default Limits (platform-imposed):

• Polymarket: Unlimited (public data)

• Kalshi: 100 requests/minute

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Notification Configuration

Email Notifications

notifications:
  email:
    enabled: true
    smtp_host: smtp.gmail.com
    smtp_port: 587
    from_address: [email protected]
    to_addresses:
      - [email protected]

Events Notified:

• Position opened

• Position closed (P&L)

• Risk limit exceeded

• Platform errors

Telegram Notifications

notifications:
  telegram:
    enabled: true
    bot_token: ${TELEGRAM_BOT_TOKEN}
    chat_id: ${TELEGRAM_CHAT_ID}

Setup:

1. Create bot with @BotFather

2. Get chat ID from @userinfobot

3. Set environment variables

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Advanced Configuration

Multi-Agent Coordination

advanced:
  enable_multi_agent: true
  agent_coordination_port: 3402

Use case: Multiple agents share risk limits

# Agent 1
agent1 = Agent(name="arbitrage_bot")

# Agent 2
agent2 = Agent(name="market_maker")

# Both respect shared max_total_exposure limit

Backtesting Mode

advanced:
  backtesting_mode: true
  backtest_data_path: ~/.moltmarket/backtest/

Behavior:

• Trades execute against historical data

• No real API calls

• No actual funds used

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Configuration Validation

Validate Configuration

# Check configuration file for errors
moltmarket config validate

# Output:
# ✓ Configuration file syntax valid
# ✓ Environment variables loaded
# ✓ Platform credentials verified
# ✓ Risk limits configured
# ⚠ Warning: Ledger not connected (optional)

Test Configuration

# Test platform connections
moltmarket config test

# Output:
# Testing Polymarket connection...
# ✓ API authentication successful
# ✓ Wallet balance: 1,234.56 USDC
#
# Testing Kalshi connection...
# ✓ API authentication successful
# ✓ Account balance: $987.65

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Common Configurations

Conservative (Low Risk)

security:
  max_position_size: 100
  max_total_exposure: 1000
  max_daily_loss: 100
  require_approval_above: 100

risk:
  default_stop_loss: 0.40
  default_take_profit: 0.60
  max_concentration: 0.20

Moderate (Balanced)

security:
  max_position_size: 500
  max_total_exposure: 5000
  max_daily_loss: 500
  require_approval_above: 1000

risk:
  default_stop_loss: 0.35
  default_take_profit: 0.65
  max_concentration: 0.30

Aggressive (High Risk)

security:
  max_position_size: 2000
  max_total_exposure: 20000
  max_daily_loss: 2000
  require_approval_above: 5000

risk:
  default_stop_loss: 0.30
  default_take_profit: 0.70
  max_concentration: 0.40

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Related Documentation

• Installation - Initial setup

• Security Best Practices - Wallet management

• Risk Limits - Detailed risk configuration

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Support

Configuration questions? [email protected]