GUIDE · ~3 MIN

Prediction markets vs perpetual futures

Are prediction markets and perps the same product?

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FAQ

Are perpetual futures legal in the United States?

It depends on the venue and product. CFTC-regulated exchanges can list retail crypto perps under approved frameworks; most offshore crypto perp venues are not licensed for US persons. Prediction-market event contracts are a separate regulated category on approved exchanges — not interchangeable with unregulated offshore perps.

What is the difference between a prediction market and a perp?

Prediction markets (event contracts) pay on a defined binary or bounded outcome — inflation print, election, Fed decision. Perps track an underlying price continuously with no expiry, using funding to anchor spot. One is a bet on an event resolution; the other is leveraged exposure to a moving index or asset.

How are Kalshi perps different from offshore crypto perps?

Kalshi perps trade on a CFTC-regulated exchange with US retail access rules, USD margin, and disclosed contract specs. Offshore crypto perps typically use crypto collateral, global access, and venue-specific liquidation engines. Mechanics rhyme — funding, mark, leverage — but regulation, counterparty, and contract terms do not match.

Can US residents trade regulated perps?

US residents can access CFTC-regulated products from registered exchanges that accept them — including certain listed perps and event contracts — subject to KYC and position limits. They generally cannot legally use offshore crypto perp platforms that block or prohibit US persons. This is educational context, not legal advice; check each venue's disclosures.

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