What is Kalshi and how does it work?

Kalshi is a regulated exchange where users buy and sell contracts on whether a future event will happen. Founded in 2018 by Tarek Mansour and Luana Lopes Lara, it operates as a futures exchange overseen by the Commodity Futures Trading Commission. Our guide to prediction markets covers the wider industry and its legal fights; this one explains Kalshi itself.

What is the Kalshi app and how does it work?

Kalshi's markets ask yes or no questions, such as whether a data release will beat a number or which team wins a game. According to Kalshi, each contract pays $1.00 if the answer is yes and $0.00 if it is no, or the reverse for a "no" contract. A yes price of 30 cents implies roughly a 30% chance, in the market's view.

Traders deal with each other, not against the house, and can sell a position before the event settles. Kalshi lists categories including politics, economics, finance, crypto, sports, climate, culture and science. It also offers perpetual futures on assets such as bitcoin and ether, limited to eligible contract participants.

How do fees and deposits work on Kalshi?

Kalshi charges a transaction fee based on the expected earnings of a contract, and its help center links to a published fee schedule. Some markets also have maker fees, which apply only when a resting order is filled. Cancelling a resting order costs nothing, and the order screen shows the fee before you confirm.

Users can fund accounts by bank transfer, debit card, wire or supported crypto. Crypto deposits are converted to a cash balance through outside providers, which for US users include Stripe and Zero Hash, and usually arrive within about 30 minutes. Network fees may apply, as explained in what gas fees are.

What is Kalshi and is it legit?

Kalshi is a licensed exchange, not an offshore betting site. The CFTC granted KalshiEX designation as a contract market on November 4, 2020, and Kalshi's help center describes itself as a designated contract market under CFTC oversight. Kalshi's about page says US users must be legal residents aged 18 or older with a Social Security number.

Regulated status does not remove risk. One side of every contract expires worthless, so a trader can lose the full amount paid.

Is Kalshi legal, and how does it compare with Polymarket?

At the federal level, Kalshi operates under CFTC rules, a role explained in what does the CFTC do in crypto. Several states argue its sports contracts break gambling laws, and as of November 2026 those cases are still in the courts.

Kalshi began as a dollar-based US exchange, while Polymarket grew as a crypto platform using stablecoins on Polygon. In October 2025 Kalshi raised $300 million at a $5 billion valuation and said it was opening to traders in more than 140 countries. Moving money off Polymarket is covered in how to withdraw from Polymarket.

Rules differ by country and state and change often. Check the regulator or a qualified professional for your own situation.