Kalshi is a unique and innovative investment platform that allows users to invest in the outcome of events. Investment looks similar to making a bet, but operates most like buying an options contact. They are backed by big names in the VC space and give investors the opportunity to trade in a variety of markets, from the monthly inflation rate to the number of people screened by TSA in any given week.
How you make money
Investors on Kalshi make money when the outcomes of the contracts they bought match their position. For example, you purchase a contract that says “an earthquake will happen in California this month”. In this situation you profit if an earthquake happens and lose your investment if there is no earthquake, similar to sportsbetting. On Kalshi, however, the payout comes from the counterparty. This is unlike sportsbetting, where the payout comes from “The House”.
How Kalshi makes money
Kalshi makes money through a transaction fee based on the expected earnings of a contract. The fee is only paid by liquidity takers who are agreeing to buy or sell a specific contract what was set up by a liquidity maker. This fee structure encourages liquidity on the platform, and makes sure those with strong convictions have the ability to buy into the contracts they seek. Kalshi also charges a $2 ACH transfer fee on any deposits coming from the Kalshi platform.
Is it safe?
Kalshi is backed by some of the biggest names in banking and venture capital, including firms like Y Combinator and Charles Schwab. This platform has been getting a ton of attention and funding because they are providing exposure to a unique asset class.