What Is Kalshi? — Regulated Event Contracts
Kalshi is a CFTC-regulated derivatives exchange built specifically for event contracts — financial instruments tied to real-world outcomes (will the Fed cut rates this meeting? will the Knicks win the championship?). Unlike Polymarket, which operates as a crypto prediction market, Kalshi runs entirely in U.S. dollars on regulated rails — making it accessible to U.S. retail traders without crypto wallets or KYC headaches.
Is Kalshi legal in the U.S.?
Yes. Kalshi was approved as a Designated Contract Market (DCM) by the CFTC in 2020 and has been live for U.S. retail since 2021. In 2024 it won a court battle to list election contracts, and now offers presidential, congressional, and gubernatorial markets alongside its traditional inflation/economic ones.
How is Kalshi different from Polymarket?
Kalshi: USD-funded, U.S.-regulated, accessible to retail with a normal bank account. Polymarket: USDC-funded on Polygon, less regulated but typically deeper liquidity on the most popular markets. Kalshi has higher fees on small markets but tighter spreads on the biggest ones.
What kinds of contracts does Kalshi list?
Economic (Fed rate decisions, CPI, jobs reports, GDP), political (election outcomes, congressional balance, presidential approval), weather (will it snow on Christmas in NYC), sports (championship winners), and entertainment (Oscars, box office, Super Bowl halftime show).
What are Kalshi's fees?
Kalshi charges a small per-contract fee that varies by market — typically 2-5¢ per share at settlement. There's no fee to open or close a position before settlement. Most retail traders find the all-in cost competitive with sportsbook juice on equivalent markets.