Isolated margin
Isolated margin is the only mode currently available in the Kalshi app. With isolated margin, the risk on each trade is ring-fenced to that position only.
Kalshi uses isolated margin to help users manage position-level risk and lower the likelihood of cross-position liquidations. As with any margined futures, losses in black swan scenarios can exceed posted margin. Kalshi therefore maintains a waterfall based financial safeguard, including a default fund and its own contributions, designed to help absorb shortfalls that may arise during default management.
Portfolio Margining
Portfolio margin offers offsets across related perpetual crypto positions in a portfolio. The approach is built to exceed regulatory protection standards and also allows for significant capital efficiencies in hedged portfolios.
Initial margin vs. maintenance margin
Initial margin is the amount you post to open a position. It is determined by the leverage you select and the notional size of your position.
Maintenance margin is the minimum balance required to keep a position open. If your account balance falls below this threshold due to market moves, you may face liquidation.
Variation margin is the profit and loss credited or debited to your account multiple times a day as the market moves. Gains increase your balance; losses reduce it.
How leverage affects your margin requirement
The higher the leverage you select, the less initial margin you need to open a position — but the closer your liquidation price is to your entry.
Example: You want $1,000 of BTC exposure. At 1x leverage, you post $1,000 of margin. At 5x leverage, you post $200 of margin — but an adverse move could liquidate you.
Settlement cycles
A settlement cycle is the process where the exchange marks your position to the current market price and collects or credits the gains/losses (variation margin) from that price movement. Kalshi Klear runs two daily settlement cycles at approximately 12:00 PM ET and 4:00 PM ET. During settlement, all positions are marked to a fresh Volume Weighted Average Price and any variation margin owed is settled. Funding rate adjustments occur three times per day.
Note: Your margin earns interest while held at the clearinghouse. The current rate is approximately 3.25% APY, subject to market conditions. More information on APY can be found here.