diff --git a/config/example.yaml b/config/example.yaml
new file mode 100644
index 000000000..1fe68e59a
--- /dev/null
+++ b/config/example.yaml
@@ -0,0 +1,19 @@
+# Olas Mech Worker Tool Configuration
+tool_id: "polymarket_intelligence"
+name: "Polymarket Prediction Market Intelligence x402 Tool"
+description: "Retrieves live Polymarket prediction market analysis, implied probabilities, volume/liquidity metrics, and automated risk flags ($0.05 USDC on Base)."
+author: "Autonomous Crypto Intelligence Labs"
+version: "1.0.0"
+
+gateway:
+  url: "https://agent-payment-gateway.vercel.app/v1/prediction-market-analysis"
+  price_usdc: "0.05"
+  network: "eip155:8453"
+  asset_contract: "0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913"
+  merchant_recipient: "0x43f9a721B59C247B6258e72A1Bf5A384b64F8A38"
+
+inputs:
+  schema: "schemas/input.json"
+
+outputs:
+  schema: "schemas/output.json"
diff --git a/schemas/input.json b/schemas/input.json
new file mode 100644
index 000000000..80eb19d3c
--- /dev/null
+++ b/schemas/input.json
@@ -0,0 +1,22 @@
+{
+  "$schema": "http://json-schema.org/draft-07/schema#",
+  "title": "PolymarketIntelligenceInput",
+  "description": "Input schema for Olas Mech Tool: Polymarket Prediction Market Intelligence",
+  "type": "object",
+  "properties": {
+    "prompt": {
+      "type": "string",
+      "description": "Natural language request or market query (e.g. 'Analyze Polymarket market 691547')"
+    },
+    "market_id": {
+      "type": "string",
+      "description": "Polymarket market ID or slug (e.g. '691547', 'kraken-ipo-by-december-31-2026-513')"
+    },
+    "analysis_type": {
+      "type": "string",
+      "description": "Depth of analysis requested",
+      "default": "market_intelligence"
+    }
+  },
+  "required": ["market_id"]
+}
diff --git a/schemas/output.json b/schemas/output.json
new file mode 100644
index 000000000..e564fe7fd
--- /dev/null
+++ b/schemas/output.json
@@ -0,0 +1,32 @@
+{
+  "$schema": "http://json-schema.org/draft-07/schema#",
+  "title": "PolymarketIntelligenceOutput",
+  "description": "Output schema for Olas Mech Tool: Polymarket Prediction Market Intelligence",
+  "type": "object",
+  "properties": {
+    "requestId": { "type": "string" },
+    "result": {
+      "type": "object",
+      "properties": {
+        "market": { "type": "object" },
+        "outcomes": { "type": "array" },
+        "market_metrics": { "type": "object" },
+        "analysis": { "type": "object" },
+        "data_timestamp": { "type": "string" },
+        "source": { "type": "string" }
+      }
+    },
+    "x402_settlement": {
+      "type": "object",
+      "properties": {
+        "status": { "type": "string" },
+        "amount": { "type": "string" },
+        "currency": { "type": "string" },
+        "network": { "type": "string" },
+        "recipient": { "type": "string" },
+        "tx_hash": { "type": "string" }
+      }
+    }
+  },
+  "required": ["result", "x402_settlement"]
+}
diff --git a/tests/test_tool_mocked.py b/tests/test_tool_mocked.py
new file mode 100644
index 000000000..e6bfa5d66
--- /dev/null
+++ b/tests/test_tool_mocked.py
@@ -0,0 +1,80 @@
+"""
+Unit & Integration Tests for Olas Mech Tool: polymarket_intelligence.py
+ALL TESTS ARE 100% MOCKED (NO LIVE PAYMENTS OR REAL BLOCKCHAIN TRANSACTIONS EXECUTED).
+"""
+
+import json
+import unittest
+from unittest.mock import patch, MagicMock
+
+import sys
+import os
+sys.path.insert(0, os.path.abspath(os.path.join(os.path.dirname(__file__), '../tool')))
+
+from polymarket_intelligence import run
+
+class TestPolymarketIntelligenceOlasTool(unittest.TestCase):
+
+    @patch('requests.post')
+    def test_http_402_challenge_mocked(self, mock_post):
+        """MOCKED TEST: Verify tool handles HTTP 402 challenge correctly."""
+        mock_resp = MagicMock()
+        mock_resp.status_code = 402
+        mock_resp.json.return_value = {
+            "error": "Payment Required",
+            "status": 402,
+            "accepts": [
+                {
+                  "scheme": "exact",
+                  "network": "eip155:8453",
+                  "asset": "0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913",
+                  "amount": "0.05",
+                  "payTo": "0x43f9a721B59C247B6258e72A1Bf5A384b64F8A38"
+                }
+            ]
+        }
+        mock_post.return_value = mock_resp
+
+        output_str = run({"market_id": "691547"})
+        data = json.loads(output_str)
+
+        self.assertEqual(data["status"], "PAYMENT_REQUIRED")
+        self.assertEqual(data["http_status"], 402)
+        self.assertEqual(data["x402_challenge"]["price_usdc"], "0.05")
+        self.assertEqual(data["x402_challenge"]["recipient"], "0x43f9a721B59C247B6258e72A1Bf5A384b64F8A38")
+        print("[PASS] MOCKED TEST 1: HTTP 402 Challenge correctly parsed")
+
+    @patch('requests.post')
+    def test_http_200_success_mocked(self, mock_post):
+        """MOCKED TEST: Verify tool returns live payload when payment signature attached."""
+        mock_resp = MagicMock()
+        mock_resp.status_code = 200
+        mock_resp.json.return_value = {
+            "success": True,
+            "data": {
+                "market": { "id": "691547", "question": "Kraken IPO by December 31, 2026?" },
+                "outcomes": [{ "name": "Yes", "price_usd": 0.12 }, { "name": "No", "price_usd": 0.88 }]
+            },
+            "payment": {
+                "amount": "0.05",
+                "currency": "USDC",
+                "network": "BASE",
+                "tx_hash": "0x_mocked_tx_hash_for_unit_testing"
+            }
+        }
+        mock_post.return_value = mock_resp
+
+        output_str = run({
+            "market_id": "691547",
+            "payment_signature": "0x_mocked_tx_hash_for_unit_testing"
+        })
+        data = json.loads(output_str)
+
+        self.assertEqual(data["status"], "SUCCESS")
+        self.assertEqual(data["http_status"], 200)
+        self.assertEqual(data["result"]["market"]["id"], "691547")
+        self.assertEqual(data["x402_settlement"]["tx_hash"], "0x_mocked_tx_hash_for_unit_testing")
+        print("[PASS] MOCKED TEST 2: Paid HTTP 200 payload correctly returned")
+
+if __name__ == '__main__':
+    unittest.main()
diff --git a/tools/polymarket_intelligence.py b/tools/polymarket_intelligence.py
new file mode 100644
index 000000000..05b1da8d3
--- /dev/null
+++ b/tools/polymarket_intelligence.py
@@ -0,0 +1,83 @@
+"""
+Olas Mech Tool Adapter: Polymarket x402 Intelligence Service
+Exposes our production x402 Polymarket Intelligence API to Olas Mech Worker Nodes and Pearl/Polystrat agents.
+
+Architecture:
+Pearl Agent ➔ Olas Mech Request ('polymarket_intelligence') ➔ Mech Worker Node ➔ HTTP 402 Challenge ➔ Base Mainnet $0.05 USDC Payment ➔ Production API Data ➔ Mech On-Chain Response
+"""
+
+import json
+import os
+import requests
+from typing import Any, Dict, Optional
+
+GATEWAY_URL = os.getenv("GATEWAY_BASE_URL", "https://agent-payment-gateway.vercel.app")
+MERCHANT_WALLET = "0x43f9a721B59C247B6258e72A1Bf5A384b64F8A38"
+PRICE_USDC = "0.05"
+BASE_NETWORK = "eip155:8453"
+
+def run(kwargs: Dict[str, Any]) -> str:
+    """
+    Main entrypoint for Olas Mech Worker execution.
+    kwargs contains 'prompt', 'market_id', and optional 'payment_signature'.
+    """
+    market_id = kwargs.get("market_id") or "691547"
+    payment_sig = kwargs.get("payment_signature") or os.getenv("X402_PAYMENT_SIGNATURE")
+
+    endpoint = f"{GATEWAY_URL}/v1/prediction-market-analysis"
+    payload = {
+        "market_id": market_id,
+        "analysis_type": kwargs.get("analysis_type", "market_intelligence")
+    }
+
+    headers = {
+        "Content-Type": "application/json"
+    }
+
+    if payment_sig:
+        headers["PAYMENT-SIGNATURE"] = payment_sig
+
+    try:
+        response = requests.post(endpoint, json=payload, headers=headers, timeout=10)
+        
+        # HTTP 402 Payment Required Handling
+        if response.status_code == 402:
+            challenge_data = response.json()
+            accepts = challenge_data.get("accepts", [{}])[0]
+            
+            return json.dumps({
+                "status": "PAYMENT_REQUIRED",
+                "http_status": 402,
+                "message": "x402 Payment Authorization required to unlock live Polymarket analysis",
+                "x402_challenge": {
+                    "price_usdc": accepts.get("amount", PRICE_USDC),
+                    "network": accepts.get("network", BASE_NETWORK),
+                    "asset": accepts.get("asset", "0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913"),
+                    "recipient": accepts.get("payTo", MERCHANT_WALLET)
+                }
+            })
+
+        response.raise_for_status()
+        api_data = response.json()
+
+        return json.dumps({
+            "status": "SUCCESS",
+            "http_status": 200,
+            "result": api_data.get("data", {}),
+            "x402_settlement": api_data.get("payment", {
+                "amount": PRICE_USDC,
+                "currency": "USDC",
+                "network": "BASE",
+                "recipient": MERCHANT_WALLET
+            })
+        })
+
+    except Exception as e:
+        return json.dumps({
+            "status": "ERROR",
+            "error": str(e)
+        })
+
+if __name__ == "__main__":
+    test_res = run({"market_id": "691547"})
+    print(test_res)