What is Kalshi? A concise guide for traders
Kalshi is a U.S.-based, CFTC-regulated event exchange that lets users trade binary contracts tied to real-world events. Traders buy contracts that pay $1 if an event occurs and $0 if it does not, similar in concept to other prediction markets. Kalshi operates under a different regulatory framework and product set than Polymarket, which runs on Polygon and uses UMA for resolution. If your interest is arbitrage on Polymarket, PolyArb is a dedicated tool offering ultra-low latency, non-custodial execution and a $7.62 minimum guaranteed edge per trade.
How Kalshi works
Kalshi lists event contracts that settle to $1 or $0 depending on a verified outcome. Contracts trade on a centralized matching engine with order books; the platform is regulated by the CFTC for certain contract types. Settlement procedures, dispute resolution, and product eligibility follow U.S. regulatory requirements, which affects which events are listed and who can trade them.
Clearing and custody on Kalshi are designed to meet U.S. compliance standards. That contrasts with decentralized markets like Polymarket, which use on-chain Conditional Token Framework tokens and UMA for optimistic resolution on Polygon.
Key differences vs Polymarket
Polymarket is a decentralized prediction market on Polygon using pUSD, CTF outcome tokens, and UMA for resolution. Kalshi is regulated and U.S.-focused; Polymarket is permissioned by geography and uses different settlement mechanics. Liquidity profiles, fee structures, and available markets differ—Polymarket supports multi-outcome and binary CTF tokens fungible on-chain.
For arbitrage specifically, Polymarket’s CLOB and ERC-1155 mechanics let intra-market combinatorial and binary spreads occur that specialized bots can exploit. Those strategies don’t translate one-to-one to Kalshi’s centralized product design.
Where PolyArb fits
PolyArb is a Polymarket-focused arbitrage bot built for traders who want low-latency, non-custodial execution on Polygon markets. It runs live today at $99/month, claims ~40ms latency versus ~800ms for free bots, and advertises a $7.62 minimum guaranteed edge per trade, with Telegram and Discord alerts for fills.
If your workflow targets Polymarket intra-market opportunities—buying complete sets or complementary binaries—PolyArb is designed to spot and route those trades quickly and automatically. It does not trade on Kalshi; it complements Polymarket activity.
Start capturing Polymarket edges today
Try PolyArb — non-custodial, live now at $99/month with 40ms latency, Telegram and Discord alerts, and a $7.62 minimum guaranteed edge per trade.
FAQ
- Is Kalshi legal to use?
- Kalshi operates under CFTC oversight for certain contract types and is available to U.S. users subject to its terms. Availability depends on local law and platform eligibility.
- Can I arbitrage between Kalshi and Polymarket?
- Cross-platform arbitrage is conceptually possible but operationally complex due to differing settlement rails, geography, and regulatory constraints. PolyArb focuses on intra-Polymarket arbitrage only.
- Does PolyArb trade on Kalshi?
- No. PolyArb is purpose-built for Polymarket intra-market arbitrage on Polygon and uses Polymarket’s CLOB and CTF mechanics.