Kalshi FAQ

Is Kalshi gambling?

Kalshi is a CFTC-regulated exchange, and its contracts are regulated as financial derivatives rather than as gambling. That said, the tax treatment of the gains is a separate, unsettled question.

How much can I lose on Kalshi?

On any single contract, the most you can lose is what you paid, since contracts settle at either $1 or $0. Your maximum risk is known upfront.

What can you trade on Kalshi?

Yes/No contracts on real-world events: economics, politics, weather, sports, and more. Each market resolves to a defined outcome on a set date.

How are Kalshi prices set?

By supply and demand in the order book. Traders post buy and sell orders, and the price reflects the market's collective probability estimate for the event.

Do I have to wait until the event to get paid?

No. You can sell your contracts at the market price any time before settlement, or hold to settlement for the full $1 per winning contract.

What does the contract price mean?

It is roughly the implied probability of Yes. A 75 cent contract reflects about a 75% market-implied chance the event happens.

Is Kalshi legal in the US?

Kalshi is a CFTC-regulated exchange operating in the US. Availability of specific markets can vary, but the platform itself is a regulated US venue.

Is my money safe on Kalshi?

Kalshi's regulated status governs how it operates and handles funds, which distinguishes it from offshore sites. It does not protect you from losses on your trades, which carry normal market risk.

Is Kalshi a scam?

No. Kalshi is a legitimate CFTC-regulated exchange. As with any trading, the risk is that your positions can lose value, not that the venue is illegitimate.

Should I enter dollars or contracts on Kalshi?

Use contracts when you want a specific payout or position size, since payout is per contract. Use dollars when you simply want to spend a fixed amount at the current price.

Are shares and contracts the same on Kalshi?

Effectively yes in casual use. Kalshi's official unit is the contract; shares is a term carried over from other platforms.

How many contracts will my dollars buy?

Roughly your dollar amount divided by the contract price. $30 at a 25 cent price buys about 120 contracts, subject to available liquidity.

How do I start trading on Kalshi?

Create and verify an account, fund it (ACH is usually free), pick a market you understand, read its resolution rules, and place a limit order near the current price.

How much money do I need to start on Kalshi?

There is no large minimum to begin; you can start small. Only trade with money you can afford to lose, since positions can go to zero.

What should my first Kalshi trade be?

A small position in a market you genuinely understand, placed as a limit order near the current price after reading the resolution rules.

Is it free to deposit on Kalshi?

ACH bank transfers are typically free. Debit card deposits can carry a percentage fee, so ACH is usually the cheaper option.

How long do Kalshi withdrawals take?

Withdrawals go to your linked bank and are not always instant; expect a short processing window. Confirm current timing in your account.

Does Kalshi use crypto?

Kalshi operates in US dollars, so there is no required crypto conversion, unlike platforms such as Polymarket that settle in stablecoin.

Does Kalshi have a sign-up bonus?

Kalshi has offered sign-up and referral promotions at various times, but specific offers change. Check Kalshi directly for any current promotion and its terms.

How do Kalshi referral rewards work?

Typically both the referrer and the new user receive a reward when the new user signs up and meets the stated conditions. The exact terms vary, so read the current offer.

Should I trade to clear a Kalshi bonus?

Be careful. Trading extra just to meet a bonus requirement can cost more in fees and bad positions than the bonus is worth. Let your trades stand on their own merits.

Is there a Kalshi app?

Yes. Kalshi offers a mobile app that lets you browse markets, read resolution rules, view the order book, place and manage orders, and track your portfolio.

Can I do everything on the Kalshi app that I can on desktop?

The app covers the core trading essentials. The main difference is screen space, which makes desktop better for studying depth and sizing larger orders carefully.

Is the Kalshi app good for live trading?

Yes, it is well suited to reacting quickly to fast-moving live markets. Just be careful with order size and type on a small screen, especially in thin markets.

What is the bid-ask spread on Kalshi?

The gap between the highest price buyers will pay (best bid) and the lowest price sellers will accept (best ask). A narrow spread signals a liquid market; a wide one signals thin trading.

What does depth mean in the order book?

The number of contracts available at each price level. Depth determines your real fill price on larger orders, since you trade through levels until your order is filled.

Why is the order book important?

It shows the actual prices and quantities available, so you know your true execution price and the market's liquidity before you trade.

What is a quick order on Kalshi?

Quick order is Kalshi's term for a market order: it fills immediately at the best available prices, taking liquidity from the order book.

Do limit orders avoid Kalshi fees?

Often yes. A limit order that rests on the book and is later filled is a maker order, which generally avoids the trading fee that immediate taker orders pay.

Which order type is better for beginners?

Usually a limit order placed at or near the current price. It controls your price, avoids slippage, and can skip the fee, while still filling quickly in active markets.

How much are Kalshi fees?

Small and variable: the fee scales with the contract price, peaking near 50 cents and shrinking toward the extremes, usually amounting to a couple of cents per contract at most. Check Kalshi's fee page for current figures.

How do I avoid Kalshi fees?

Use limit orders that rest on the book. Such maker orders generally avoid the trading fee that immediate taker orders pay. There is also no fee at settlement.

Does Kalshi charge a fee when contracts settle?

No. When a contract resolves to $1 or $0, Kalshi does not take a cut. You keep the full payout on winning contracts.

What is slippage on Kalshi?

The difference between the price you expected and your actual average fill, which happens when your order is bigger than the liquidity at the best price and fills through worse levels.

How do I avoid slippage?

Use limit orders, check the order book depth before trading, set a slippage tolerance, and break large orders into smaller pieces in thin markets.

Why did I get a worse price than the quote?

Likely a thin order book. The quote is only the first slice of liquidity; a larger market order fills the rest at progressively worse prices.

What is the difference between maker and taker?

A taker matches an existing order immediately and pays a fee; a maker rests an order in the book, adds liquidity, and generally avoids the fee.

How do I become a maker on Kalshi?

Place a limit order at a price that does not fill instantly, so it rests in the book until another trader matches it.

Are maker orders really free?

Maker fills generally avoid the trading fee that taker orders pay, though Kalshi sets the schedule and can apply maker fees in some cases, so check the current fee page.

Can I sell my Kalshi contracts before the event?

Yes. You can sell at the current market price any time before settlement to lock in a profit or cut a loss.

How do I sell on Kalshi?

Sell your held contracts back into the market, using a limit order for price control or a quick order for speed. Your proceeds are price times quantity minus any taker fee.

Should I sell early or hold to settlement?

Selling early locks in a known result but pays a fee and gives up remaining upside. Holding collects the full $1 per winner with no settlement fee but carries outcome risk.

Does Kalshi have an API for trading bots?

Yes. Kalshi offers REST and WebSocket APIs (plus FIX for institutions) for market data, order placement, and portfolio management, and explicitly supports programmatic trading.

How do you authenticate with the Kalshi API?

With API credentials: a key ID and a private key used to sign your requests. Keep the private key secret and never commit it to code.

Is there a demo environment for Kalshi bots?

Yes. Kalshi provides a demo sandbox separate from production. Test your bot there before risking real money in live trading.

Can I run a high-frequency bot on Kalshi?

The API has rate limits that make true high-frequency trading impractical. It suits medium-frequency and event-driven strategies, with throttling and exponential backoff built in.

Can you bet on sports on Kalshi?

You trade Yes/No event contracts on sports outcomes. It is an exchange where you trade against other people at market-set prices, not a sportsbook with fixed odds.

How is Kalshi different from a sportsbook for sports?

There is no house or built-in vig. Prices are set by the market, you can buy or sell any time including live, and you pay small trading fees instead of a bookmaker's margin.

Can I trade Kalshi sports markets during the game?

Yes. Prices update live as the game unfolds, and you can enter or exit mid-game, though fast markets can also be thin between moments of action.

How does Kalshi decide who wins a market?

By the market's published resolution rules, which specify the exact condition for Yes, the official data source, and the date. The outcome is determined against that defined source.

When do Kalshi contracts pay out?

Automatically once the outcome is determined: $1 per winning contract into your balance, $0 for losers, with no settlement fee.

Why should I read the resolution rules?

Because markets that sound alike can settle on different criteria, and edge cases like ties or postponements are spelled out there. Misreading the rules is a common, avoidable way to lose.

Can I trade Fed rate decisions on Kalshi?

Yes. Kalshi offers Yes/No contracts on outcomes like Federal Reserve rate decisions, which settle against the official decision.

How do Kalshi inflation or jobs markets settle?

Against the specified official data release named in the market's resolution rules, such as a CPI print or the monthly jobs report.

Why do economic market prices move before the data?

Because the price reflects the market's expectation, which shifts as forecasts and related indicators change. The largest move usually happens when the official number is released.

Can you trade weather on Kalshi?

Yes. Kalshi offers Yes/No contracts on weather outcomes like daily high temperatures, rainfall, and storm activity, settled against official measurements.

How do Kalshi weather markets settle?

Against an official data source named in the resolution rules, such as a specific weather station's recorded measurement over a defined window.

What should I check before trading a weather market?

The exact threshold, the official station or source, the measurement window, and any rounding, all of which are in the resolution rules and can decide a close outcome.

Can you trade elections on Kalshi?

Kalshi has offered Yes/No contracts on election outcomes, settled on official results. Availability of specific election markets can change with the regulatory landscape, so check current listings.

How do Kalshi election markets settle?

Against official outcomes as defined in each market's resolution rules, which specify the source and what counts as a final result.

Are Kalshi election prices like polls?

They act as a real-time, money-backed probability estimate that people often compare to polls and models, but the price is only as accurate as the traders setting it.

Can I trade Bitcoin on Kalshi without leverage?

Yes. Kalshi offers binary event contracts on crypto prices, such as whether Bitcoin closes above a level by a date. They are unleveraged, with your loss capped at what you paid.

What is the difference between Kalshi crypto markets and perpetuals?

Crypto event contracts are binary, unleveraged bets with capped risk and a fixed resolution date. Perpetuals are leveraged, continuous price-tracking contracts with funding and liquidation.

How do Kalshi crypto event contracts settle?

Against the reference price and condition stated in the market's resolution rules on the resolution date, paying $1 for correct contracts and $0 otherwise.

What are Kalshi Perpetuals?

CFTC-regulated perpetual futures that let you go long or short on a crypto asset's price with leverage and no expiration date. They are cash-settled in dollars; no crypto changes hands.

How is a perpetual different from a Kalshi event contract?

Event contracts are binary Yes/No bets that settle at $1 or $0, with your loss capped at what you paid. Perpetuals are leveraged price-tracking contracts with funding and liquidation, where losses can exceed what you would risk on a simple event contract.

Can you get liquidated on Kalshi perpetuals?

Yes. If losses push your balance below the maintenance margin, Kalshi automatically closes the position and you can lose the collateral backing it. Conservative position sizing and stop-loss orders help manage this.

What is the funding rate on Kalshi perps?

A small payment exchanged between longs and shorts every 8 hours that keeps the perpetual's price aligned with the asset's spot price. You may pay or receive it depending on conditions, and it adds to the cost of holding a position.

Are Kalshi perpetuals taxed like event contracts?

Possibly differently. Perpetual futures are a distinct, new product and their tax treatment can differ from binary event contracts. This is unsettled territory, so consult a tax professional.

What is margin on Kalshi perpetuals?

The collateral you post to back a leveraged position. It covers potential losses and determines how large a position you can hold and how close you are to liquidation.

What is the difference between initial and maintenance margin?

Initial margin is what you need to open a position; maintenance margin is the lower level you must stay above to keep it open. Falling below maintenance triggers liquidation.

Is the perpetuals margin account separate from my Kalshi balance?

Yes. Kalshi keeps your perpetuals margin in a separate account from your predictions balance, and you move funds between them deliberately.

What is the funding rate on Kalshi perpetuals?

A small payment exchanged between long and short traders every 8 hours that keeps the perpetual's price aligned with the asset's spot price.

Do I pay the funding rate to Kalshi?

No. Funding flows between traders (longs and shorts), not to the exchange as a fee. You may pay it or receive it depending on market conditions.

How often is funding charged on Kalshi?

Every 8 hours. Over a multi-day hold, those payments can add up to a meaningful cost or credit.

What does liquidation mean on Kalshi?

It is when Kalshi automatically closes your leveraged perpetual position because your balance fell below the maintenance margin. You can lose the collateral backing that position.

How do I avoid getting liquidated?

Use lower leverage, keep a margin buffer above the maintenance requirement, set stop-loss orders, and monitor positions during volatile periods. If a normal price move would liquidate you, your size is too large.

Does liquidation cost extra?

Liquidation itself is the forced closing of your position, in which the collateral behind it can be lost. The real cost is the loss on the position, not a separate penalty.

What is the difference between perpetuals and spot?

Spot means owning the actual asset and profiting only when it rises. Perpetuals track the price with leverage, let you go short, never expire, and carry funding and liquidation risk.

Are perpetuals riskier than buying crypto?

Yes, considerably. Leverage means a smaller price move can wipe out your margin through liquidation, whereas spot losses track the asset one-for-one.

Should I trade perpetuals or just buy crypto?

For simple, longer-term exposure, spot is usually safer. Perpetuals suit shorting, hedging, or precise directional trades by people who actively manage leverage and risk.

What order types can I use on Kalshi perpetuals?

Market and limit orders to enter, plus take-profit and stop-loss orders that automatically close your position at a price you set in advance.

What is a stop-loss on Kalshi perpetuals?

An order that automatically closes your position once the price hits a level you choose, capping your loss before it can reach liquidation.

Should I always use a stop-loss on perpetuals?

On a leveraged product it is strongly advisable. A stop-loss lets you define your exit rather than leaving it to the maintenance-margin threshold and a forced liquidation.

How do market makers make money?

Primarily from the bid-ask spread: buying slightly low and selling slightly high across many trades, while managing the risk of holding inventory.

Can I be a market maker on Kalshi?

In a basic sense, yes. Resting limit orders on both sides of a market provides liquidity like a maker. It carries real risk and is not guaranteed to be profitable.

Are market makers good or bad for traders?

Generally helpful: they tighten spreads and provide liquidity so you can trade near the quote. Their presence is a sign of a healthy, liquid market.

Does the Kalshi price mean probability?

Yes, roughly. Because a contract pays $1, its price in cents maps to the market's implied probability that the event happens.

How do I convert a Kalshi price to odds?

Treat the price as a percentage chance and convert to American odds, remembering the formula differs above and below 50%. An odds calculator makes this exact.

How do I know if a price is wrong?

You do not know for sure; you form your own probability estimate and trade when it differs from the price. An edge exists only if your estimate is genuinely better than the market's.

Why do Kalshi prices move?

Because the price is a probability, it moves when new information changes the odds: news, data releases, live event developments, and sometimes simply large orders consuming liquidity.

Why do live sports markets move so fast?

Because the game itself is constant new information. Each play changes the probability, and the price tracks it in real time, often faster than the order book can keep up.

Is every price move based on news?

No. In thin markets, a large order can move the price just by consuming liquidity, without any real change in the odds. Checking depth helps you tell signal from noise.

What is expected value on Kalshi?

The probability-weighted average payoff of a trade. If your estimate of the true probability is higher than the price implies, the trade has positive expected value.

What does edge mean in trading?

The gap between your probability estimate and the market's price. A real edge, measured after fees, is what gives you a reason to expect profit over the long run.

Does positive expected value guarantee a profit?

No. It is a long-run average. Even strong positive-EV trades lose individual bets; the edge only shows up across many trades, which is why sizing and discipline matter.

Are prediction markets accurate?

Often yes, especially liquid ones. By aggregating many money-backed views, prices tend to be well-calibrated, with events priced at a given probability happening at roughly that rate over many markets.

Why are prediction markets better than polls or pundits?

They aggregate everyone's information continuously, update instantly on news, and reward people who correct mispricings with profit, which steadily improves accuracy.

When are prediction markets unreliable?

In thin, illiquid markets with few traders, where prices are noisy and easy to move, or when information is held by almost no one. Liquid, widely traded markets are more trustworthy.

What is the most common Kalshi mistake?

Using market orders in thin books and filling well above the quote. Checking depth and using limit orders prevents most of it.

Why am I losing money even when I'm right?

Often fees and slippage. Round-tripping thin edges near 50 cents pays the fee twice and can erase the advantage. Order type and price selection matter.

How can beginners trade more safely on Kalshi?

Read each market's resolution rules, default to limit orders near the quote, check order book depth, mind the fees on coin-flip markets, and only ever risk what you can afford to lose.

Is there arbitrage on Kalshi?

Occasionally, but true risk-free arbitrage is rare. The clearest form is buying Yes and No for under $1 combined, but fees and thin liquidity usually erase the gap.

Why do Yes and No add up to about $1?

Because exactly one of them wins and pays $1 at settlement. When the combined price drops below $1, that gap is the theoretical arbitrage, before fees and slippage.

Can I make risk-free money on Kalshi?

Rarely. Apparent arbitrage usually disappears once you account for taker fees on each leg and the limited contracts available at the quoted prices. Always compute the all-in cost first.

How much should I risk per trade on Kalshi?

A common approach is a small percentage of your total bankroll per position, so no single loss can seriously hurt your account. The exact figure is personal, but conservative sizing is the consistent theme.

Why does bankroll management matter?

Because even a real edge comes with losing streaks and variance. Sizing small and avoiding overconcentration lets you survive the downswings and keep trading your edge.

What is the most common bankroll mistake?

Emotional sizing: betting big to chase a loss or piling in after a win. Setting sizing rules in advance and following them is the main defense.

Can you hedge with Kalshi?

Yes. Because contracts pay out on real-world events, you can use them to offset a risk you already carry, such as inflation, weather, or asset-price exposure.

What is a hedge?

A position that gains when something you are exposed to goes wrong, reducing the overall swing. The aim is risk reduction, not profit, and it costs something if the bad event never happens.

Is hedging with Kalshi worth it?

It depends on whether a contract genuinely tracks your real exposure and whether the cost of protection is worth the reduced risk. Imperfect alignment can leave residual risk.

Is Kalshi better than a sportsbook?

It depends on what you want. Kalshi offers exchange pricing with no built-in vig and the ability to trade in and out, while sportsbooks offer promotions and a betting-first experience. They are structurally different products.

Does Kalshi have a vig like a sportsbook?

Not in the same way. There is no bookmaker margin baked into the price; Kalshi charges small trading fees instead, and the two sides of a market sum to about $1.

Can I cash out on Kalshi like a sportsbook?

Yes, but better: you sell into the open market at the current price rather than accepting a cash-out figure the house sets.

What is the main difference between Kalshi and Polymarket?

Kalshi is a CFTC-regulated US exchange that uses dollars; Polymarket settles in crypto on a blockchain. That difference drives funding, fees, and tax treatment.

Is Kalshi or Polymarket cheaper?

It depends on how you trade. Kalshi charges small per-trade fees (avoidable with maker orders); Polymarket has historically taken a cut of net profits. Your win rate and style determine which costs less.

Which is better for taxes, Kalshi or Polymarket?

Neither is simple, and both require self-reporting. Kalshi's regulated, dollar-based structure gives the strongest basis for the contested Section 1256 argument; Polymarket is generally analyzed more like property.

Are Robinhood event contracts the same as Kalshi?

Yes, underneath. Robinhood's event contracts execute on Kalshi's exchange and trade in the same order book. The difference is the interface, order types, and paperwork.

Is it cheaper to trade on Kalshi or Robinhood?

For active traders, usually Kalshi directly, because it offers limit (maker) orders that can avoid the trading fee. Brokers limited to market orders make every trade a fee-paying taker.

Does Robinhood send a 1099 for event contracts?

No. Robinhood has said it will not issue 1099s for event-contract trades and provides an annual statement instead. You still self-report.

What is the difference between Kalshi and PredictIt?

Kalshi is a broad CFTC-regulated exchange; PredictIt is a politics-focused market that originated under academic, special-arrangement regulation, with tighter position caps and fees on profits and withdrawals.

Does PredictIt have trading limits?

Historically yes: caps on how much you can hold per contract and on traders per market, plus fees on profits and withdrawals. Kalshi does not impose those small per-trader caps.

Which has more markets, Kalshi or PredictIt?

Kalshi, by a wide margin. It spans economics, weather, sports, politics, crypto, and perpetual futures, while PredictIt focuses on politics.

Do I owe taxes on Kalshi if I didn't get a 1099?

Yes. Kalshi generally does not issue a 1099-B for contract trades, but you are still required to report your gains. The missing form does not remove the obligation.

What is the lowest legal tax treatment for Kalshi gains?

Section 1256's 60/40 split usually produces the lowest effective rate, but its application to event contracts is contested. Whether you can defensibly claim it depends on your facts and your advisor's judgment.

Is Kalshi income considered gambling?

The IRS has not definitively classified it. Gambling is one of three possible treatments and is generally the least favorable, especially given the post-2025 cap on deducting gambling losses.

When are 2025 Kalshi taxes due?

Returns for the 2025 tax year are due April 15, 2026. You can extend the filing deadline to October 15, 2026, but any tax owed is still due in April.

Does Kalshi send a 1099-B?

Generally no. Kalshi typically issues a 1099-INT for interest and a 1099-MISC for referral credits, but not a comprehensive 1099-B for your contract trades.

How do I report Kalshi income without a 1099?

You self-report by totaling your proceeds, costs, and fees from your trade history and reporting the net under whichever treatment you and your advisor choose.

Will the IRS know about my Kalshi trades if there's no form?

Possibly. The lack of a form does not protect unreported income. The IRS can examine gains regardless. Reporting accurately is the safe path.

Are Kalshi contracts definitely Section 1256?

No. It is an unsettled, contested position. Kalshi's CFTC regulation supports considering it, but the swap classification and lack of IRS guidance cut against treating it as automatic.

What is the 60/40 rule?

Under Section 1256, 60% of gains are taxed at long-term rates and 40% at short-term rates regardless of holding period, which usually lowers the effective rate for active traders.

What form reports Section 1256 contracts?

Form 6781, which flows into Schedule D. An aggressive position is often accompanied by a Form 8275 disclosure.

Should I just claim Section 1256 to save money?

Not without professional advice. The treatment is contested for event contracts and claiming it requires factual support and a willingness to defend it. Model the difference, then decide with a CPA.

What form do I use for Kalshi taxes?

It depends on your treatment: Form 6781 for Section 1256, Form 8949 and Schedule D for capital gains, or Schedule 1 for ordinary income. Decide the treatment with a professional first.

Do I need to report Kalshi if I lost money?

Yes. You report your net result either way, and reporting losses is also how you may be able to deduct them, depending on your treatment.

Can ContractTax file my taxes for me?

No. It computes and organizes the numbers under each treatment so you or your preparer can file accurately. It is not a filing service or a tax advisor.

Does Polymarket send a 1099?

Generally no. Polymarket typically issues no tax forms, so you must self-report your gains and losses from your own records.

How are Polymarket winnings taxed?

The treatment is unsettled. A common conservative approach treats the crypto-settled outcome tokens as property, with each disposition a capital gain or loss. Confirm with a professional.

Is Polymarket Section 1256?

Unlikely to qualify. Polymarket is not a CFTC-regulated Designated Contract Market, which weakens the Section 1256 argument that is sometimes raised for Kalshi.

Can I write off Kalshi losses?

It depends on your treatment. Under capital or Section 1256 treatment, losses offset gains and up to $3,000 of ordinary income per year. Under gambling treatment, losses only offset winnings and are now capped at 90%.

Can Kalshi losses offset my salary?

Only in a limited way under capital or Section 1256 treatment (up to $3,000 of net loss against ordinary income per year). Gambling treatment does not allow it at all.

What is the Section 1256 loss carryback?

Section 1256 lets you carry net losses back up to three years against prior Section 1256 gains, which can produce a refund via an amended return.

Do you pay taxes on prediction markets?

Yes. Gains from Kalshi, Polymarket, Robinhood event contracts, and similar platforms are taxable, whether or not you receive a form.

Are prediction markets taxed as gambling?

Not necessarily. Gambling is one of three possible treatments. The IRS has not definitively classified prediction-market income, so the correct treatment is a professional judgment.

Which prediction market is most tax-friendly?

It depends on your situation and is unsettled. Kalshi's regulated status gives the strongest basis for the favorable Section 1256 argument, but that position is contested and not automatic.

Does Robinhood send a 1099 for event contracts?

No. Robinhood has said it will not issue 1099s for event-contract trades. Traders generally receive an Event Contracts Annual Statement instead.

Are Robinhood event contracts the same as Kalshi?

Effectively yes for tax purposes. Robinhood's event contracts execute on Kalshi's exchange, so the same treatment questions apply.

How do I report Robinhood event contract gains?

Self-report from your records under the treatment you and your advisor choose. The annual statement is a starting point, not a complete tax form.

Do day traders pay quarterly taxes?

Often yes. Trading gains have no withholding, so profitable traders generally owe quarterly estimated payments to avoid an underpayment penalty.

What are the estimated tax due dates?

Federal estimated payments are typically due in April, June, September, and January of the following year.

How do I avoid an underpayment penalty?

Generally by meeting a safe harbor: paying at least 90% of the current year's tax or 100% of last year's (110% at higher income), spread across the four periods. Confirm specifics with a professional.

Are Kalshi perpetuals taxed like event contracts?

Not necessarily. Perpetual futures are a distinct, new product, and their treatment can differ from binary event contracts. There is no specific IRS guidance, so consult a professional.

Do Kalshi perpetuals qualify for Section 1256?

It is an open question. Regulated futures often get Section 1256's 60/40 treatment, and perps are CFTC-regulated futures, but their novel features mean it is not a settled rule.

How are funding payments taxed on perpetuals?

This is unsettled. How funding you pay or receive is characterized is one of several open questions, which is why professional guidance is important for perpetuals.