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A filing with the Commodity Futures Trading Commission (CFTC) provides an insight into the Kalshi prediction market, as it may offer rebates on fees to sportsbooks that remove risk from its platform.
the the document is submitted on Saturday, February 7, and it acts as a notice to the CFTC that the company is implementing a ‘Sportsbook Hedging Rebate Program’ on or after February 23.
If introduced, the program will begin to take effect upon notification of the exchange and will remain in effect until the earlier of February 1, 2027, or a date on which Kalshi program amendment or termination.
How does the Kalshi fee rebates program work?
According to the document, the purpose “is to improve efficient risk management in and for entities that currently offer sportsbook services. Sportsbook services can use Kalshi without charge to the “taker” in certain circumstances.”
The goal is also to increase the number of the central limit of the order book and thus improve the efficiency of pricing. The larger the volume of the central limit order book, the greater the pricing competition.
Under the terms of the program, the intricacies of the introduction are shared: “During the Program, only for orders exceeding 300,000 total contracts sold for the purpose of hedging described in the Program, Kalshi will rebate all “taker” fees (for example, fees for non-resting orders) and fees derived from the use of any rebate or RF, “Rebates” incentive earned in the relevant month, paid to the Eligible Participants as an exchange fee in relation to the Eligible Markets.
“Rebates are payable on the 15th of the following Month.”
This latest addition comes as the New York Times’ Dealbook newsletter reports that the brand is working with insurance company Game Point Capital to help sports teams, athletics departments, and others mitigate financial risks.
Featured Image:Kalshi
The post Kalshi will offer fee rebates to sportsbooks that eliminate risk, according to the CFTC document first appeared in ReadWrite.
