Is It Safe to Trade on Kalshi?

[cryptobro]

What is Kalshi?
Kalshi is a US-based prediction market that allows users to trade event contracts on topics like elections, inflation data, and weather events—using US dollars rather than crypto.

Is Kalshi regulated?
Yes. Kalshi is regulated by the Commodity Futures Trading Commission as a designated contract market. This means it operates under US financial regulations similar to traditional futures exchanges.

Does regulation make Kalshi safer?
Regulation significantly reduces certain risks. Customer funds are subject to segregation rules, markets are monitored for manipulation, and there are formal compliance and dispute-resolution processes. However, regulation does not protect users from losing money due to bad predictions.

What risks still exist on Kalshi?
Trading risk remains the primary concern. Contracts are binary, so incorrect outcomes can result in total loss of the position. Liquidity can vary by market, and some contracts may have wide spreads or limited exit opportunities before settlement.

Kalshi is generally considered safer than unregulated or decentralized prediction markets due to regulatory oversight and consumer protections. However, it is still a speculative trading platform, not a savings or investment account.

[mendez]

kalshi being cftc regulated already makes it feel way less sketchy than most prediction markets