Gondor has introduced a portfolio-backed margin account that allows Polymarket traders to borrow against their entire forecast market holdings instead of individual positions.
Summary
- Gondor launches V1 with portfolio-backed borrowing for Polymarket traders.
- Cross-margin replaces standalone loans after a seven-month beta program.
- Private access begins next week, with a public launch planned for September.
According to Gondor’s announcement on Monday, the new product, called V1, uses a cross-margining system that evaluates a trader’s entire Polymarket portfolio as collateral before granting credit. Private access is expected to begin next week, while a public launch is planned for September. Gondor also stated that it does not retain user assets.
The release expands on the company’s initial lending strategy announced following its August 2025 angel funding round. As previously reported by crypto.news, Gondor raised capital in a round led by Maven11 Capital, with participation from investors associated with Polymesh, Rhino.fi, Futur, Salt and others to develop lending products for Polymarket traders. V1 builds on this effort by replacing position-based borrowing with portfolio-backed credit.
Cross-margin model replaces isolated loans
Before introducing V1, Gondor spent seven months testing its lending system through a closed beta. According to the company, more than 150,000 users joined the waitlist, after which it reviewed applicants’ Polymarket activity and selected 1,000 of the platform’s most active traders to participate.
During the beta, borrowers initially used an isolated lending model that treated each forecast market position separately. Gondor said this approach exposed lenders to binary market risk, as a position could quickly lose almost all of its value before liquidation became possible.
As a result, the company said lenders had to compensate for this risk by charging higher borrowing costs and imposing stricter terms. Lending was restricted to more liquid markets, borrowing capacity was capped and some loans had to be closed before the affected forecast markets reached resolution.
Gondor added that these guarantees protect lenders but reduce the borrowing experience for merchants by limiting available credit and shortening the life of loans.
Portfolio collateral supports larger credit lines
The company said V1 addresses these issues by allowing gains in one position to offset losses in another, similar to how traditional prime brokerages extend credit to an investor’s overall portfolio rather than valuing assets individually.
According to Gondor, this portfolio-based structure allows for greater borrowing capacity while reducing financing costs. The company also said the system can support a wider variety of forecast markets and allows traders to keep their positions open until the market resolves instead of forcing loans to close early.
Although Gondor has explained how the cross-margin model works, several operational details remain confidential ahead of private deployment. The announcement did not specify borrowing rates, collateral requirements, liquidation thresholds, or prediction markets that will be available when early access begins.
The company did not indicate whether these terms would be finalized before the September public release, but the upcoming private access period should provide the first live test of the wallet-backed lending model outside of its closed beta.
