By Kalshi View Editorial Team · Updated 2026-07-17

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Real photo by Jakub Żerdzicki / Unsplash, used under the Unsplash License.

How Kalshi Market Settlement Works: Rules & Payouts

Quick answer: Kalshi settlement is not just “the event ended.” A market has specific outcome criteria, a verification source, close and determination timing, and full rules. After Kalshi determines the result, a settlement timer runs; once the market is finalized, winning positions are paid automatically. Kalshi says most markets settle within a few hours after the outcome is known, often about three hours, but the market-specific rules and official source control.

Primary sources checked: On July 17, 2026, we reviewed Kalshi's Market FAQs, Market Rules guide, Rules Summary guide, Timeline and Payout guide, Request to Settle guide, official API documentation for market lifecycle and market settlement, and Kalshi's regulatory rulebook hub. A specific market's full rules remain the authority for that contract.

Five stages from trading to payout

StageWhat it meansWhat a trader should do
activeThe market is open for trading.Read the full rules, source, close condition, and payout timing before placing an order.
closedNew orders are no longer accepted; the market awaits determination.Do not treat close time as proof that the result is final.
determinedThe result is set and settlement_timer_seconds is running.Check the displayed result and wait through the settlement window.
disputed or amendedThe result has been challenged or re-determined; an amendment restarts the timer.Follow the market page and official notices rather than social-media interpretations.
finalizedSettlement is complete and positions have been paid.Verify the result and cash movement in Portfolio or Trading History.

The consumer interface may use friendlier wording, while the API exposes these lifecycle states. The REST filter value settled maps to markets in the terminal finalized state.

Close time is not determination time

Kalshi documents separate time fields for separate jobs:

A game, announcement, election count, or data release can appear finished while the named source has not yet published the version required by the rules. Conversely, a market can continue trading while the exchange waits for confirmation. The visible event and the contract's determination process are related, but they are not interchangeable.

What the full market rules decide

Before a trade, verify five elements in the market page:

  1. Measured outcome: the exact person, statistic, threshold, phrase, date, or event covered.
  2. Payout criterion: the condition that resolves a strike Yes, No, or to another permitted value.
  3. Verification source: the agency, league, publication, or other authority used to confirm the outcome.
  4. Time boundary: when observation begins, ends, closes, and is expected to pay.
  5. Exceptions: postponement, cancellation, data revision, no-show, source failure, early close, and other contract-specific clauses.

Kalshi's Rules Summary guide says the summary identifies the value, timeline, and verification source, but it does not contain the full text. Select View full rules. A short headline can omit the definition that determines the payout.

How settlement payout works

For a simple binary market, the mechanics are direct:

The trading profit is not automatically $1. It is payout minus the contract's acquisition cost and applicable trading fees. For example, a winning contract bought at $0.62 has a gross $0.38 difference before fees. Use the payout calculator to keep stake, gross payout, and net result separate.

Not every market must resolve only to $1 or $0. Kalshi documents scalar and some special-rule outcomes with non-standard values. Combo payouts can also reflect the product of underlying position values. Read the specific rules instead of applying the binary shortcut to every product.

Why settlement can take longer

Kalshi's current help guide says most markets settle within a few hours after the outcome is known, often within about three hours. It also lists reasons that can make the process longer:

“About three hours” is a general service estimate, not a universal contract deadline. If capital availability matters, use the Timeline and Payout section and full rules when planning the position.

What to do when a market looks unresolved

  1. Open the market page and reread the exact outcome criterion and verification source.
  2. Compare the current time with the listed close, determination, and projected payout information.
  3. Check whether the named official source has published finalized, not preliminary, data.
  4. Review the market page, Portfolio, and Trading History for the current result and payout.
  5. If the platform offers Request to Settle, submit the relevant strike for market-team review only when the rule conditions appear satisfied.
  6. Kalshi's current FAQ suggests checking the rules first and using in-app chat for a standard single-outcome market that remains without an update more than roughly 12 hours after the event, unless the rules specify a later window.

A settlement request is a request for review, not a user vote on the result. Provide the market title and relevant official source rather than screenshots of price action or unofficial commentary.

Settlement checklist before trading

This checklist does not predict the event. It prevents an otherwise correct event forecast from becoming the wrong contract interpretation.

Frequently Asked Questions

How long does Kalshi market settlement take?

Kalshi's current Market FAQs say most markets settle within a few hours after the outcome is known, often within about three hours. That is an estimate, not a deadline. The market's rules can specify a later determination time, and official-source delays, revisions, combo review, or a dispute can extend settlement.

What is the difference between close, determination, and settlement on Kalshi?

Close means new orders stop. Determination means Kalshi has set the result and the settlement timer is running. Finalized means settlement is complete and positions have been paid. An event appearing to be over does not by itself make the market settled.

How much does a winning Kalshi contract pay at settlement?

For a simple binary market, Yes holders receive $1 per contract when the result is Yes, while No holders receive $1 per contract when the result is No. Kalshi's documentation notes that scalar or special-rule outcomes can have non-standard values, so the full market rules still control.

What happens if a Kalshi settlement source is delayed?

Kalshi may wait for the official source agency to publish finalized data. Trading, close time, and determination time are separate, so a market can remain open or undetermined while official confirmation is pending. Read that market's source and timing clauses rather than assuming the visible event result is final.

Can a determined Kalshi result be disputed?

Yes. Kalshi's API lifecycle documents determined, disputed, amended, and finalized states. During the settlement timer a result may be disputed; an amended result restarts the timer. Finalized is the terminal state in the REST API.

Where can I find the settlement rules for a Kalshi market?

Open the market page and review Rules, Important Information, and Timeline and Payout. The rules summary identifies key criteria and a verification source, but Kalshi says it is only a summary; use View full rules for the complete terms.

Not financial advice. This independent guide is not affiliated with Kalshi. Market terms, lifecycle fields, support guidance, and interfaces can change. The active market's full rules and official verification source control its outcome. Trading involves risk, and you can lose money.

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