Settlement
The resolution of a contract when its event is decided. A correct Kalshi contract settles at $1 and an incorrect one at $0, in cash.
Settlement is how a held contract pays out, as opposed to selling early. Knowing a market's exact settlement criteria matters, since edge cases (overtime, certified results, data sources) determine which side is correct.
Settlement is the moment a market resolves and contracts pay out their fixed value. When the underlying event is decided, YES contracts settle at $1 if the event happened and $0 if it did not, with NO contracts the reverse. Any position you still hold at settlement is paid out automatically according to the result.
Settlement is what makes an event contract binary: there is no partial outcome, the contract is worth either a dollar or nothing. This is also the point at which an unrealized gain or loss becomes fully realized for a position you carried to the end, rather than closing early on the exchange.
Markets specify their settlement source and timing in the rules, which matters because edge cases and disputes are resolved against those terms, not against intuition. Reading how a market settles, what source decides it, and when, is part of evaluating whether a price is fair, especially for ambiguous or judgment-based events.
You hold YES on a market that resolves in your favor. At settlement each contract pays $1, so 100 contracts return $100. If you had paid 70 cents each ($70), your realized gain at settlement is $30 before fees.
Frequently asked questions
What is settlement on Kalshi?
It is when a market resolves and contracts pay their fixed value: YES pays $1 if the event happened and $0 if not, with NO the reverse. Open positions are paid out automatically by the result.
Do I have to hold until settlement?
No. You can sell on the exchange before settlement to lock in a gain or cut a loss. Settlement only applies to positions you still hold when the market resolves.
How do I know how a market settles?
Each market lists its settlement source and timing in its rules. Reading those terms is important for ambiguous events, since disputes are resolved against the stated rules.