The Kalshi leg of a cross-platform arbitrage pays out at settlement, so the settlement rules decide when your capital comes back and how much. This article summarises Kalshi's documentation on settlement. It is not trading advice, and the details can change, so check the current documentation.
How settlement works
Settlement occurs when a market's outcome is determined, and positions are automatically resolved and funds transferred. On a Yes outcome, Yes holders receive $1 per contract; on a No outcome, No holders receive $1 per contract. The documentation adds that only net positions are settled, after netting.
Timing
Markets typically settle shortly after expiration, but the documentation says timing can vary with market type, data source availability and manual review. That variability is why the slower leg of a pair, which can be either platform, sets when you can reuse the money; see capital lockup and the statuses in the lifecycle article.
Fees and rounding
Settlement fees are zero for simple yes/no determinations but may apply for sub-cent scalar settlement. The actual payout is rounded to whole cents. Trading fees are a separate matter, covered in the Kalshi fee formula.
What to take from it
- Count the settlement date of both legs, not only the cheaper one.
- Do not assume both platforms pay out on the same day.
- If the two markets resolve differently, the guaranteed profit is not guaranteed; see the resolution mismatch article.
Where Arbitrage Agent fits
Arbitrage Agent matches markets across Kalshi and Polymarket, checks the resolution rules on both sides, and shows the result in a live feed with a step-by-step guide for both legs. You place the orders yourself, and the final check of the details is still yours. See the plans or start with the Starter plan.
Related articles
- Kalshi Market Lifecycle and Statuses
- Capital Lockup and Settlement Time
- Kalshi Fee Formula and Rounding
- Polymarket Redeem and Merge
Key terms: Event Contract · Resolution Risk