Kalshi
Kalshi Inc. (KalshiEX LLC)
The first fully regulated US prediction market: Kalshi is a CFTC Designated Contract Market trading binary (yes/no) event contracts on politics, sports, economy, weather and more, settled in dollars. Unlike on-chain markets, funds are held by the platform, KYC is full, and resolution happens under regulatory oversight. In 2024 it won its legal battle with the CFTC over election markets; in 2026 it added crypto perpetual contracts.
Data & conditions
| Trading fee | 1.75% |
|---|---|
| Maker fee | 0.44% |
| Fund custody | Custodial (platform holds funds) |
| Market resolution | Regulated (CFTC) |
| Liquidity model | CLOB |
| Market categories | Politics, Sports, Crypto, Economy, Culture/Entertainment, Science/Tech, Weather, Other |
| Leverage available | No |
| Settlement token | USD |
| Fiat on-ramp | Yes |
| KYC | Full |
| Supported countries | US · 1+ countries |
| Regulator | CFTC |
| OAM Italy registration | No |
| Segment | B2C |
| Past incidents | Legal battle with the CFTC over election markets, won in federal court in September 2024 · Multiple state lawsuits over sports contracts (2025–2026) |
| MiCA / License status | CFTC Designated Contract Market (DCM) CFTC Designated Contract Market (DCM) |
Strengths
- The only fully regulated US prediction market (CFTC DCM).
- Direct fiat on-ramp (ACH, card) and USD settlement.
- Deep, liquid markets on politics, sports and economy.
- Low maker fees and a transparent order book.
- No notable sovereignty advantage documented.
Weaknesses
- Custodial: funds are held by the platform.
- Full KYC required, zero pseudonymity.
- Effectively limited to verified US residents; restrictions in several states.
- Non-trivial taker fees (≈1.75% of the contract at the 50¢ price).
- Custodial: the platform holds your funds and can freeze or lose them.
- Full KYC required: verified identity, zero pseudonymity.
- Funds can be frozen at the platform’s discretion.
- Subject to regulation (CFTC Designated Contract Market (DCM)): reporting to authorities and freezes on order.
- FATF-aligned jurisdiction: strong cooperation with authorities.
Verdict
On protection Kalshi is the category benchmark: CFTC regulation, oversight, fiat on-ramp and dollar settlement make it the most solid prediction market for the mainstream US user. The price is giving up self-custody and pseudonymity, plus non-trivial fees and access effectively limited to the United States.
From a crypto-native angle Kalshi is the opposite of Polymarket: custodial, full KYC, a FATF-aligned jurisdiction and funds that can be frozen on order. No self-custody, no pseudonymity, permissioned access. That is the price of full regulation: maximum formal protection, minimum sovereignty.
Promp's editorial rating based on real fees and net annual cost. Promp reviews third-party products independently.
"Sovereignty" rating: score computed on privacy/anonymity (30%), fund control (20%), censorship resistance (20%), trustless/auditability (20%) and costs (10%). Same data, different weights.
FAQ
Is Kalshi legal and regulated?
Yes. Kalshi has been a CFTC-regulated Designated Contract Market (DCM) since 2020, the first US exchange dedicated to event contracts. In 2024 a federal ruling confirmed the legality of its election markets.
How much are Kalshi's fees?
Fees follow a price-based formula: taker ≈ 0.07 × contracts × P × (1−P), maker ≈ 0.0175 × contracts × P × (1−P). At a 50¢ price (the most expensive case) the taker fee is about 1.75% and the maker about 0.44%; they fall sharply toward extreme prices.
Is Kalshi custodial?
Yes. Unlike on-chain prediction markets, Kalshi holds users' dollar balances. You deposit via ACH, card or crypto (converted to USD); it is not a self-custody platform.
Can I use Kalshi outside the United States?
Generally no: Kalshi is limited to verified US residents and is not available as a retail service in most other jurisdictions.
Sources
- Official service page Taker fees · Maker fees Data verified on Jun 23, 2026
- cftc.gov Regulator · Licenze (DCM) Data verified on Jun 23, 2026
- en.wikipedia.org Azienda · Fondatori · Past incidents · Kyc Data verified on Jun 23, 2026
- help.kalshi.com Regulator · Risoluzione tipo · Custodial · Settlement token · +1 Data verified on Jun 23, 2026