What is the Volume Incentive Program?
The Volume Incentive Program is planned to relaunch October 29th, 2024!
Kalshi is relaunching the Volume Incentive Program to incentivize participants to provide liquidity and promote price discovery on the Exchange. The most recent terms and conditions can be found here, and at kalshi.com/regulatory/notices. Starting October 29th, 2024, you can earn back a percentage of your volume traded (for eligible trades) based on weekly volume thresholds.
See below for notes on the calculation of weekly dollar volume and rebate payout.
How it works
On a weekly basis, we pay you back a percentage of your weekly volume traded (both maker and taker) based on the following tiers, with the tiers and percentages acting in the same way as tax brackets:
Tiers | Qualifying Total Weekly Volume | % Dollar Rebate at Tier |
Tier 1 | $50,000 | 0.70% |
Tier 2 | $250,000 | 0.73% |
Tier 3 | $500,000 | 0.80% |
Tier 4 | $1,000,000 | 0.95% |
Tier 5 | $2,500,000 | 1.40% |
Tier 6 | $5,000,000 | 1.00% |
Weeks are counted from Sunday to Sunday at 12AM ET (i.e. a trade at 12AM Sunday would count towards the upcoming week). Only trades that are executed on the order book at prices between 7¢ and 93¢ (inclusive) count towards your qualifying volume. There are also a few special rules to note.
Special Rules:
Trades in markets with zero fees (i.e. any trade where neither counterparty pays a fee) do not qualify towards your weekly volume for this program.
Each $1 of volume in the NASDAQ100Y or INXY series (the yearly financials) counts as $0.80, i.e. there is an 80% volume weighting on all trades in those series.
Qualifying Volume Calculation
Volume is calculated for each participant using their respective buy price or $1 - their sell price. For example:
A member purchases 2 No contracts for $0.10 each.
The member then sells these 2 No contracts for $0.09 each (equivalently, they buy 2 Yes contracts for $0.91).
The members Qualifying Total Weekly Dollar volume would be $2.02 = 2 * $0.10 + 2 * $0.91.
Rebate Payout Calculation
The % Dollar Rebate at each tier is paid out for a member’s volume up to the next tier. For example, a member who trades $6,000,000 in Qualifying Weekly Total Dollar Volume would receive
$250,000 * 0.70%
+ $250,000 * 0.73%
+ $500,000 * 0.80%
+ $1,500,000 * 0.95%
+ $2,500,00 * 1.40%
+ $1,000,000 * 1.00% = $66,825
in rebates.
Example:
You purchase 20,000 Yes contracts at 50¢ each in a given market. You now have 20,000 x $0.50 = $10,000 in Qualifying Total Weekly Volume.
You later sell those 20,000 Yes contracts at 55¢ each, adding 20,000 x ($1 - $0.55) = $9,000 to your Qualifying Total Weekly Volume, for a total of $19,000.
A bit later, you decide to take a position in a yearly NASDAQ market. You buy 10,000 Yes contracts at 96¢ each, adding 10,000 x $0.96 x 80% = $7,680 to your Qualifying Total Weekly Volume. Your new total is $26,680.
At the end of the week, your trading adds up to a Qualifying Total Weekly Volume of $300,000. The volume tiers are treated as brackets, so, you make $250,000 * 0.70% + $50,000 * 0.73% = $2,115 in rebates from the program.
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