Event contract
Last reviewed 2026-08-07
Event contract — definition
The legal term for a Kalshi-style binary derivative that pays $1 if a specific real-world event occurs.
Event contracts are regulated by the CFTC as derivatives, not as bets. That distinction is what lets Kalshi operate legally in most US states.
Polymarket's contracts are economically identical but live in a different (offshore + on-chain) regulatory regime.
Learn more: Event contracts explained: what they are and how they work
See also
Frequently asked questions
What does event contract mean in prediction markets?
The legal term for a Kalshi-style binary derivative that pays $1 if a specific real-world event occurs.
How does event contract work in practice?
Event contracts are regulated by the CFTC as derivatives, not as bets. That distinction is what lets Kalshi operate legally in most US states.
Sources & further reading
- CFTC — Event contracts explainedU.S. Commodity Futures Trading Commission
- Kalshi — how prices and settlement workKalshi
- UMA Optimistic Oracle documentationUMA Protocol
Last reviewed 2026-08-07 · CollegePredictionMarkets.com