Is Kalshi betting legal in the US?

Yes, Kalshi is a US-regulated design market recognized by the CFTC. It operates with USD settlement and defined resolution rules. Check Kalshi’s published eligibility and state-restriction list for your location.

What happens if I buy YES and NO at the same time?

If the YES and NO prices sum to less than $1.00, buying both can lock in a spread as edge. The payoff remains $1.00 for the correct side and $0.00 for the incorrect side, minus any applicable fees.

How does settlement work on Kalshi?

Settlements are based on Kalshi’s resolution rule and official data sources. Payouts go to $1.00 for winning sides and $0.00 for losing sides, all in USD. It’s not oracle-driven; Kalshi determines outcomes using the stated rule.

What is KalshiArb’s role with Kalshi betting?

KalshiArb provides non-custodial tools and alerts to spot arbitrage opportunities within Kalshi markets. We don’t custody funds, and you retain control of your API key and balances while using our edge signals.

Do Kalshi bets incur fees like traditional brokers?

Yes. Kalshi charges a per-contract trading fee calculated from the price and size of the order. Fees apply to both sides of a trade, and the exact amount varies with price. See Kalshi’s fee schedule for current details.

Definition

What Is KALSHI Betting and How It Works

What is Kalshi betting? Kalshi is a US-regulated prediction-market platform where you trade YES or NO shares on real-world events. Each contract resolves to $1.00 if your side is correct and $0.00 if it is not, making the payoff a fixed unit of value. The markets operate on a centralized order book and clearinghouse, with rules set by Kalshi and oversight from the CFTC. This article explains the core concept of Kalshi betting and what you should know as a potential trader.

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Kalshi is a CFTC-regulated US market for event contracts

Kalshi operates as a Designated Contract Market, which means it is a federally regulated venue for trading binary event contracts. Traders buy YES or NO shares that resolve to $1.00 or $0.00 based on the event’s outcome. Settlement is in USD and determined by Kalshi’s written rules and official sources, not by an external oracle. This regulatory framework is what KalshiArb emphasizes for users seeking a compliant, US-based platform.

How Kalshi betting works: YES and NO contracts

Every market on Kalshi has two sides: YES and NO. The best-ask prices on these sides should sum to $1.00 in fair value. If YES costs 42¢ and NO costs 58¢, buying both sides would lock in a near-guaranteed edge, minus the platform fee. The payout is fixed at $1.00 for the winning side, with the losing side worth $0.00. Prices move with supply and demand, reflecting the probability of the event resolving in the given direction.

What counts as an event and how resolution works

An event contract on Kalshi represents a real-world outcome such as an election result, economic release, or other verifiable events. Each market has a resolution rule specifying the data source and threshold used to settle. Outcomes are determined by Kalshi market operations using those rules and sources, not by an outside oracle. This setup ensures a clear, auditable settlement process in USD.

Arbitrage context: what traders look for

Intra-market arbitrage on Kalshi focuses on price inefficiencies within a single event or across mutually exclusive child markets under the same event ticker. When the YES and NO sides price in a way that their combined value is less than $1.00, traders can buy both legs to lock in a risk-defined edge. KalshiArb scouts these opportunities and provides alerts to help you act quickly within the platform’s rules.

KalshiArb: tools for Kalshi betting

KalshiArb is an independent toolset that helps US-based traders monitor Kalshi markets for edge. It delivers alerts for favorable price gaps and, in some plans, an autonomous agent to help execute agreed-upon strategies. The non-custodial approach means you keep control of your Kalshi API key and funds while using KalshiArb insights to inform decisions.

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FAQ

Is Kalshi betting legal in the US?: Yes, Kalshi is a US-regulated design market recognized by the CFTC. It operates with USD settlement and defined resolution rules. Check Kalshi’s published eligibility and state-restriction list for your location.
What happens if I buy YES and NO at the same time?: If the YES and NO prices sum to less than $1.00, buying both can lock in a spread as edge. The payoff remains $1.00 for the correct side and $0.00 for the incorrect side, minus any applicable fees.
How does settlement work on Kalshi?: Settlements are based on Kalshi’s resolution rule and official data sources. Payouts go to $1.00 for winning sides and $0.00 for losing sides, all in USD. It’s not oracle-driven; Kalshi determines outcomes using the stated rule.
What is KalshiArb’s role with Kalshi betting?: KalshiArb provides non-custodial tools and alerts to spot arbitrage opportunities within Kalshi markets. We don’t custody funds, and you retain control of your API key and balances while using our edge signals.
Do Kalshi bets incur fees like traditional brokers?: Yes. Kalshi charges a per-contract trading fee calculated from the price and size of the order. Fees apply to both sides of a trade, and the exact amount varies with price. See Kalshi’s fee schedule for current details.