How Does KALSHI Payout Work on Yes/No Contracts
How does Kalshi payout work? On every binary event contract, one side resolves to $1.00 and the other to $0.00. Kalshi pays the winning side of each contract the full $1.00, with the losing side worth nothing at settlement. The mechanism is uniform across YES and NO, and the rules are defined in Kalshi’s settlement framework. This article explains settlement timing, calculation, and how edge opportunities from price spreads relate to payouts. It also touches on the practical implications for traders using YES + NO combinations priced under $1.00.
Settlement mechanics and payout per contract
Every Kalshi binary contract has two sides: YES and NO. At settlement, the winning side pays out $1.00 per contract, while the losing side ends up at $0.00. For a single contract, you pay the price you bought (between $0.01 and $0.99) and receive $1.00 if correct, or $0.00 if incorrect. The net result is a profit of $1.00 minus your purchase price, minus any fees charged by Kalshi. This straightforward structure keeps payouts proportional to the contract’s binary outcome.
Timing and when payouts are credited
Payouts are settled after the event’s resolution rule is applied. Kalshi uses the designated source to determine the result, not an external oracle. Settlement occurs in USD and credits are reflected in your Kalshi account balance accordingly. Depending on the settlement timing for a given market, you may see the payout appear on the same day or shortly after resolution. Withdrawals follow Kalshi’s standard rails once the funds are credited.
Edge mechanics and how payouts interact with pricing
Edge on Kalshi arises when the best YES and best NO prices sum to less than $1.00. In that case, buying both legs locks in a guaranteed cent-level spread at settlement. The payout of each winning leg remains $1.00, while the other leg loses its purchase price. Fees reduce net profit, but the payout mechanics themselves stay fixed at $1.00 per winning contract. This is the core concept behind intra-market arbitrage opportunities on binary events.
Fees and their effect on realized payouts
Kalshi charges a per-fill trading fee on each order, calculated per contract and dependent on the trade price. While fees affect net profits, they do not change the $1.00 payout for winning contracts. It’s important to factor fees into your edge calculation when evaluating potential payouts, especially for trades near the extremes of the price range.
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FAQ
- What is the payout per winning contract on Kalshi?
- The winning side of a Kalshi binary contract receives $1.00 per contract at settlement, regardless of the price paid to enter the trade.
- When are payouts credited to my Kalshi account?
- Payouts are credited after the event’s resolution rule is applied. Settlement timing depends on the market; funds typically appear in the account balance once settlement is complete.
- Do Kalshi fees affect the payout amount?
- Fees reduce your net profit but do not change the fixed $1.00 payout for a winning contract. You should subtract fees from your gross edge when evaluating profitability.
- Can I use YES + NO combinations to lock in an edge?
- Yes. If YES_ask + NO_ask is less than $1.00, you can buy both sides to lock in a risk-defined spread, with each winning contract paying out $1.00 at settlement.