Kalshi now offers perpetual futures. If you've heard of futures trading but aren't sure how it works, or if you're familiar with Kalshi's prediction markets and wondering how this is different, this article has you covered.
What is a perpetual futures contract?
A perpetual futures contract lets you take a position on the price of an asset — in this case, Bitcoin — and hold it for as long as you want. There's no expiration date. You decide when to open and close your position.
Your profit or loss moves with the price of Bitcoin. If you're long and the price goes up, you make money. If it goes down, you lose. It's that direct.
A simple example
Imagine you believe Bitcoin's price will rise. You open a long position on BTCPERP with $100 of margin at 5x leverage — giving you $500 of Bitcoin exposure.
If Bitcoin's price rises 10%, your position gains $50 — a 50% return on your $100 of margin.
If Bitcoin's price drops 10%, your position loses $50 — half your margin.
While your position is open, you may pay or receive a funding payment every 8 hours depending on market conditions.
Note: Leverage amplifies both gains and losses. In the example above, a 20% drop in Bitcoin's price would wipe out your entire margin. Always trade within your risk tolerance.
How is this different from Kalshi's prediction markets?
Kalshi's prediction markets resolve Yes or No at a set date. Perpetual futures work differently:
No expiration. There's no end date. You hold your position until you choose to close it.
Price-based. Your P&L tracks Bitcoin's price directly, not the outcome of an event.
Leverage. You can control a larger position with a smaller amount of capital — up to 6x. This amplifies both gains and losses.
Funding payments. Every 8 hours, a small payment flows between long and short holders to keep the contract price anchored to Bitcoin's real-world spot price.
Margin required. You need to post collateral to open and maintain a position.
How do perps compare to other instruments?
vs. spot markets — perps let you go long or short and use leverage for more capital-efficient positioning
vs. options — no strikes, no Greeks, no time decay; just linear exposure to price
vs. traditional futures — no expiry, no rolling contracts, no gaps when a contract closes
vs. prediction markets — continuous price exposure instead of a binary Yes/No outcome
How accessible is it?
One of the things that makes Kalshi's perps different is the minimum position size. You can open a Bitcoin position for approximately $8 — compared to ~$80 on Binance and ~$800 on Coinbase's US perps product. That means you can start small, manage risk precisely, and scale at your own pace.
You can fund your account the same way you do on the rest of Kalshi — ACH, wire, Apple Pay, PayPal, Venmo, and Cash App. No crypto wallets, no VPN required.
Contract specs
Spec | Details |
Underlying | Bitcoin (BTC) spot price in USD |
Price index | CF Benchmarks Bitcoin Real Time Index |
Trading unit | 1/10,000 of one BTC per contract |
Minimum position | ~$8 |
Max leverage | Up to 6x |
Trading hours | 24/7 |
Expiration | None |
Clearing | Kalshi Klear LLC |
Settlement | 12:00 PM ET and 4:00 PM ET daily |
How does margin work?
To open a position, you post initial margin — collateral that covers your potential losses. You have two options for how margin behaves:
Isolated margin — risk is limited to a single position. If that position is liquidated, your other funds are unaffected.
Cross margin — collateral is shared across all your positions, giving you more flexibility but also more overall exposure.
As the market moves, your account is updated to reflect gains or losses. If your balance drops below the maintenance margin threshold, you may receive a margin call. If it isn't met, your position may be liquidated.
Your margin is held in a segregated account, separate from Kalshi's own funds, as required by CFTC regulations.
How does funding work?
Because perpetual futures never expire, a funding mechanism keeps the contract price close to Bitcoin's actual spot price. Every 8 hours — at 12:00 AM ET, 8:00 AM ET, and 4:00 PM ET — a funding rate is calculated.
If the rate is positive, long holders pay short holders.
If the rate is negative, short holders pay long holders.
If the rate is zero, no payment is made.
Note: The funding rate is capped at +2% / –2% per interval. If it falls below 0.01% in absolute value, it's automatically set to zero.
Risks to understand before you trade
Perpetual futures are powerful tools, but they carry real risk. Make sure you understand all of the following before opening a position.
Liquidation risk
If the market moves against your position and your account falls below the maintenance margin threshold, Kalshi may liquidate your position to prevent further losses. This can happen quickly in volatile markets. For example, at 6x leverage, a 17% move against you could wipe out your entire margin. You can set a stop-loss when placing your order to help manage this.
Funding rate costs
Funding payments happen every 8 hours and can accumulate over time. If you hold a leveraged position for days or weeks, these costs can meaningfully reduce your profitability — even if the price moves in your favor. Always factor funding into your cost of holding a position.
Market volatility
Crypto markets can move fast and sharply. A sudden price swing can trigger liquidation before you have time to react. Use stop-losses, monitor your positions, and only trade size you can afford to lose.
Important: Perpetual futures involve leverage and carry significant risk of loss. They may not be appropriate for all traders. Never trade more than you can afford to lose.
Is this regulated?
Yes. Kalshi is a CFTC-regulated Designated Contract Market (DCM). All perpetual futures are cleared through Kalshi Klear LLC, Kalshi's own CFTC-regulated clearinghouse. This makes Kalshi the first platform to offer true perpetual futures legally and natively to US residents — no VPN, no workarounds.
Your margin is held in a segregated account, separate from Kalshi's own funds. If Kalshi were ever to face financial difficulty, your funds are protected — this is a requirement of CFTC regulation and a stark contrast to how unregulated offshore exchanges have historically operated.
How do I get started?
Complete KYC if you haven't already
Open a margin account in the Portfolio tab
Fund your margin account
Go to a market page and place your first trade