Gondor has introduced V1, a margin account that lets users borrow against their entire Polymarket portfolios and use the credit to purchase additional positions.
The product, described as the first margin account for Polymarket, uses a cross margin system. This means a trader’s full portfolio is considered as collateral, rather than evaluating each prediction market position separately. The platform does not take custody of user assets.
From beta to public launch
The product will enter private access next week before launching publicly in September, according to an announcement Monday.
This launch follows a seven-month beta designed to test demand for credit backed by Polymarket positions. The goal was to determine whether the model could operate sustainably at scale.
More than 150,000 users joined the beta waitlist. Gondor reviewed applicants’ Polymarket profiles and selected 1,000 of the platform’s most active traders to test the product.
Lessons from isolated lending
The beta initially used an isolated lending model. Traders borrowed against individual positions. Gondor said this structure created problems because binary positions can quickly fall from a high value to nearly zero before lenders can liquidate them.
Accounting for that gap risk required lenders to charge higher interest rates or fees. It also forced the protocol to restrict borrowing to liquid markets, cap exposure, and close some loans before the underlying market resolved. Gondor said those restrictions created a tradeoff between protecting lenders and offering competitive terms to borrowers.
How cross margining works
V1 attempts to address the issue through cross margining. This is a structure used by traditional prime brokers to extend credit against an entire portfolio. Gains and collateral across other positions can support an account when one position loses value.
The company said the model allows it to extend more credit at lower rates. It can also support a wider range of markets and let users maintain positions through resolution.
The announcement did not disclose borrowing rates, collateral requirements, liquidation thresholds, or which markets will be supported when private access begins.
