Liquidity Incentive Program

What is it?

The Liquidity Incentive Program rewards you for placing resting orders that improve market liquidity. This program pays you for maintaining orders on the books that help other traders get better prices, even if your orders don't get filled.

Program Dates

Start: September 15, 2025 End: September 1, 2026

Kalshi can end or modify the program at any time.

Eligibility

Who can participate: Most regular Kalshi members

Who cannot participate:

  • Kalshi affiliates and employees

  • Market makers with existing agreements

  • Introducing Brokers, FCMs, and their customers

How It Works

Earning Rewards

  1. Place resting orders in eligible markets

  2. Kalshi takes snapshots every second during trading hours

  3. Your orders are scored based on size and proximity to best prices

  4. Earn a share of the reward pool based on your liquidity contribution

Market Selection

  • All Kalshi markets are potentially eligible

  • Active reward periods are clearly marked on market pages

  • Each market shows its liquidity incentive schedule

Scoring System

Key Parameters (Set Per Time Period)

  • Target Size: 100-20,000 contracts (minimum liquidity threshold that must be met)

  • Discount Factor: Up to 1.00 (determines how much orders away from best price are penalized)

  • Reference Price: Best bid/ask prices used as baseline

How Your Score is Calculated

Step 1: Snapshot Scoring

  • Kalshi takes random snapshots every second during trading hours

  • Only orders that help reach the Target Size qualify for points

  • Each qualifying order gets scored based on:

    • Order size (larger = higher score)

    • Distance from best price (closer = higher score using Discount Factor)

Step 2: Distance Penalty

  • Orders at the best bid/ask get full credit (1.0x multiplier)

  • Orders further away get reduced credit based on the Discount Factor

Step 3: Size Weighting

  • Your score for each snapshot = Order Size × Distance Multiplier

  • Multiple orders at different price levels all contribute to your snapshot score

Step 4: Total Score

  • Your final score = Sum of all your snapshot scores during the time period

  • Your reward = (Your Score ÷ Total All Participants' Scores) × Reward Pool

Example: You maintain 500 contracts at best bid for 50% of snapshots. If you represent 20% of qualifying liquidity in a $100 reward period, you earn $20.

Rewards Structure

  • Time periods: Up to 31 days each

  • Daily rewards: $10-$1,000 per day

  • Minimum payout: $1.00 (rounded down to nearest cent)

  • Payment timing: Programs that end by 10 AM ET will be paid out the same day by 3pm ET, while programs ending after 10 AM ET will be paid out the following day by 3pm ET.

Program Rules

Monitoring:

  • Kalshi monitors for abusive behavior and market manipulation

  • Participant status can be revoked for violations

  • Program may be terminated at any time

Transparency:

  • All schedules and parameters displayed publicly

  • Market pages show eligibility and reward information

Kalshi can end the program at any time. For the latest updates, visit https://kalshi.com/regulatory/notices.

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