CFTC-regulated prediction market exchange for trading sports, politics, and macro event contracts
KYC requiredPolitics · Sports +2OtherAvailable in the US
Kalshi
CFTC-regulated prediction market exchange offering binary event contracts settled in US dollars
4.3/ 5
Our score
Very good
Market types
PoliticsSportsCryptoEconomics+2
Settles in
USD
Trading fees
Model fee rounded to $0.000001 precision with balance rounding fees
Available in the US
Yes
Regulated venue
Yes
KYC required
Yes
What is Kalshi?
Kalshi is a CFTC-regulated event derivatives exchange based in New York City, where participants trade binary contracts that pay out based on real-world outcomes in sports, politics, economics, weather, and culture. Contracts are priced between $0.00 and $1.00, settling in US dollars when designated real-world conditions resolve.
Team and corporate background
Kalshi was founded in 2018 by MIT graduates Tarek Mansour, who is chief executive officer, and Luana Lopes Lara, who is chief operating officer. Operating as a registered Designated Contract Market under federal oversight, the company raised capital from backers including TCV, Paradigm, Sequoia Capital, and a16z crypto, reaching a valuation of $22 billion in May 2026. In January 2025, Donald Trump Jr. joined the company as a strategic advisor.
Trading mechanics and platform structure
Unlike decentralized prediction venues that operate on blockchains, Kalshi is an off-chain central limit order book. Traders purchase \"Yes\" or \"No\" contracts using cash balances and can deposit through direct bank transfers or clearinghouse accounts. Contract positions can be traded continuously prior to expiration, with price levels structured across fractional tick bands down to sub-cent increments. The exchange also provides low-latency REST and WebSocket APIs, direct subaccount isolation, and perpetual futures products tied to traditional benchmarks like the US 500 index and cryptocurrencies.
Fee model
Kalshi calculates transaction fees using a model fee rounded up to six decimal places ($0.000001 granularity). Direct member cash balances align to a grid of $0.0001, while non-direct clearinghouse accounts align to $0.01. Any rounding discrepancies between fill revenue and balance increments are directed to an order fee accumulator, which automatically rebates accumulated overpayments back to the trader once minimum grid increments are reached.
Regulation and operating history
Kalshi received its Designated Contract Market registration from the CFTC in November 2020 and opened to the public in July 2021. Following a legal challenge against the CFTC in DC District Court in 2024, Kalshi won approval to list congressional election contracts. In May 2026, weekly transaction volume reached over $2 billion. The 2026 FIFA World Cup winner market attracted 3 million new users and generated over $1.2 billion in turnover on its tournament winner market alone. The venue requires mandatory identity verification (KYC) for all participants and adheres to US market oversight.
Trade-offs and risks
Kalshi operates as a centralized, off-chain exchange, so participants do not hold self-custodial on-chain assets. Access is focused on US users who submit full identity verification, excluding anonymous trading. In February 2026, Kalshi sanctioned traders in two insider trading incidents and turned over records to federal authorities. Kalshi subsequently implemented employment verification and risk-scoring surveillance tools.
Founders
Tarek MansourCEO
Studied at MIT.
Luana Lopes LaraCOO
Studied at MIT.
Best for:US residents wanting regulated event contractsQuantitative traders using FIX and REST APIsSports bettors preferring central orderbook pricingTraders hedging election and macroeconomic events
Pros and cons
Pros
- Registered Designated Contract Market status provides federal regulatory oversight for US-based traders
- Deep liquidity exceeding $2B in weekly volume across major events in May 2026
- Transparent dollar-denominated balances eliminate stablecoin depeg risks
- Subpenny orderbook precision down to $0.0001 allows fine-grained execution
Cons
- Requires full identity verification (KYC), preventing anonymous participation
- Centralized custody of cash balances without on-chain asset withdrawals
- Subject to regulatory exclusions, including a 2026 trading ban on US Senate staff
- Unprofitable to profitable user ratio reached 2.9 to 1 in 2026
Our review
4.3/5
Very good
Kalshi provides federally regulated US prediction markets and deep institutional liquidity, but it requires strict identity verification and operates as a centralized, off-chain custodial exchange.
Kalshi is a CFTC-regulated event contracts exchange founded in 2018 by MIT graduates Tarek Mansour and Luana Lopes Lara. Operating out of New York City, the venue provides legal derivatives trading directly inside the United States. Settlements execute off-chain in US dollars rather than crypto stablecoins. Traded contracts span politics, macroeconomics, culture, weather, and sports, with sports driving 89% of exchange revenue in 2025.
Kalshi offers several distinct structural strengths:
- CFTC registration as a Designated Contract Market followed a 2024 legal challenge concerning congressional election contracts.
- Weekly transaction volume exceeded $2B and more than $1.2B on the 2026 World Cup winner market alone.
- The company reached a $22 billion valuation in May 2026 with investments from TCV, Paradigm, and Sequoia Capital.
These features come with operational trade-offs typical of centralized venues. Kalshi requires mandatory identity verification (KYC), excluding anonymous trading. Kalshi uses centralized custody rather than self-custody. Regulatory oversight also introduces friction: in May 2026, the US Senate banned senators and staff from trading on the venue, while internal surveillance investigations into insider trading resulted in account bans and formal referrals to the CFTC.
Trading fees are calculated using a model-derived formula rounded up to six decimal places ($0.000001), supplemented by a rounding accumulator that aligns direct-member balances to $0.0001 and FCM-cleared balances to $0.01. Kalshi offers direct bank clearing and REST or FIX connectivity.
Specs
| Market types | Politics, Sports, Crypto, Economics, Culture, Weather · unverified |
|---|---|
| Settles in | USD · unverified |
| Chains | Other |
| Trading fees | Model fee rounded to $0.000001 precision with balance rounding fees · unverified |
| Resolution source | Official government and industry statistics, primary source reporting · unverified |
| Available in the US | Yes · unverified |
| KYC required | Yes · unverified |
| Regulated venue | Yes · unverified |
| Market topics | Elections, Macroeconomics, Sports, Cryptocurrency, Weather, Financial Indices · unverified |
Not disclosed by the provider: Mobile app, Liquidity rewards.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Key features
Binary event contracts
Trades resolve to either $1.00 or $0.00 in cash based on validated real-world outcomes across sports, elections, economic indicators, and weather.
CFTC-regulated venue
Operates under direct US federal oversight as a registered Designated Contract Market.
Subpenny pricing grid
Orders execute across multi-tier price structures with tick sizes ranging from $0.01 down to $0.0001.
Developer trading API
Provides REST, WebSocket, and FIX connectivity with request-for-quote support and fractional contract increments of 0.01.
Perpetual index futures
Offers regulated perpetual futures contracts covering cryptocurrencies and benchmark assets like the US 500 index.
Subaccount balance isolation
Enables direct members to isolate trading balances and execute distinct strategies through segmented subaccounts.
Inside Kalshi
Event Contracts
CFTC-regulated binary prediction markets where traders take yes or no positions on outcomes across politics, economics, weather, and sports.
Perpetual Futures
Federally regulated perpetual futures contracts offering leveraged exposure on cryptocurrency benchmarks and traditional equities like the US 500 index.
Kalshi API and Direct Subaccounts
Trading infrastructure supporting FIX and REST interfaces, Request for Quote (RFQ) matching, subpenny pricing formats, and isolated account balances.
Kalshi screenshots
What users say about Kalshi
User sentiment is divided between casual users who find the platform entertaining and accessible for low-stakes event wagering, and frustrated traders reporting issues with payouts, unclear settlement rules, and unresponsive customer support.
Top goods
In their own words
“New to it I like that I don’t have to risk an arm and a leg to figure this out from the womb.”
“Trading I like how they show the odds and percentages before you pick what you want to play on your ticket”
“Rip off Put in 15 bucks just to try. Literally the first bet I made was 2 days away. They got new information the day of and instead of reimbursing they just figured they’d add a different option to vote on. Essentially forfeiting everyone who had already made a bet.”
“Customer support This companies customer support is one of the worst. I asked for a live support and that is because I originally asked a question to the Ai, it didn’t answer question and ended the convo. Reason I asked for live support.”
“Bs Scam app won’t even void a player for getting injured in the 1st quarter of a game just takes your money”
“Unreliable Customer Service/Theft Kalshi is withholding a double payment from my account. I have contacted multiple times and have been making complaints about specific customer service members… yet the same people replying are the ones who end the chat and are the ones who answer their own…”
Based on 100 Reddit posts and comments, 45 App Store reviews from the last 12 months, checked Oct 23, 2026. These are posts by users on other sites, not reviews submitted on CryptoReview.
User reviews
No user reviews yet. Have you used Kalshi? Share your experience below.
Funding and investors
$9.8BTotal raised
6Rounds
13Investors
-
Series F May 2026 $200M
-
Funding round May 2026 Amount undisclosedSource
-
Funding round Mar 2026 $1B
-
Series E Nov 2025 $1B
-
Series D Oct 2025 $300M
-
Series C Jun 2025 $185M
FAQ
Who founded Kalshi?
Kalshi was founded in 2018 by MIT graduates Tarek Mansour, who serves as CEO, and Luana Lopes Lara, who serves as COO.
Is Kalshi legal and regulated in the United States?
Yes, Kalshi operates legally in the United States as a Designated Contract Market (DCM) regulated by the Commodity Futures Trading Commission (CFTC).
How do trading fees work on Kalshi?
Fees are generated from a proprietary trade model rounded to six decimal places, with an accumulator that aligns direct member balances to $0.0001 and standard member balances to $0.01.
Does Kalshi run on a blockchain or use cryptocurrency?
Kalshi settles trades off-chain in US dollars rather than running on a blockchain network, though it offers perpetual futures on crypto assets.
Does Kalshi require KYC identity verification?
Yes, Kalshi enforces standard regulatory compliance and identity verification for all users opening trading accounts.
How does Kalshi resolve event market outcomes?
Markets resolve through defined public data sources specified in the contract terms, monitored by an independent Surveillance Audit Committee that handles dispute referrals and insider trading investigations.
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