Kalshi, the Bengaluru‑based prediction‑market startup, announced on Tuesday that it has added a new perpetual futures contract to its product suite. The contract tracks the Kalshi US‑500 index, which comprises 500 of the largest publicly traded companies in the United States.

How perpetual futures work

Unlike traditional futures, perpetual futures—often called “perps”—do not have a set expiration date. Traders can hold positions indefinitely, avoiding the need to roll contracts over as dates approach. To keep the contract price aligned with the underlying index, Kalshi will apply a funding rate, a periodic fee exchanged between long and short position holders.

Features of the new Kalshi US‑500 contract

• Leverage: Investors can amplify exposure to the index, taking either long or short positions.
• Continuous pricing: Funding rates adjust regularly to ensure the contract price stays close to the index value.
• Accessibility: The product is offered through Kalshi’s existing platform, which already allows users to wager on a variety of events, from sports outcomes to election results.

“Stock market exposure is the next step towards Kalshi becoming a full‑service financial exchange, and perps are the best way for our traders to get this exposure,” said CEO Tarek Mansour in a statement.

Regulatory background

Kalshi filed an application with the Commodity Futures Trading Commission (CFTC) in August to launch the perpetual futures vehicle. The filing indicates the company’s intent to meet regulatory requirements for offering leveraged derivatives to retail participants.

Future product plans

In addition to the US‑500 contract, Kalshi is preparing to seek CFTC approval for a perpetual futures contract based on West Texas Intermediate (WTI) crude oil. Reuters previously reported that the company is expanding beyond its earlier focus on cryptocurrency and metal derivatives.

Implications for traders

The introduction of a perpetual futures product gives traders a new tool for managing exposure to broad market movements without the constraints of traditional contract expirations. By offering both long and short leveraged positions, Kalshi aims to attract a wider range of investors seeking flexible, high‑risk, high‑reward strategies.

Market observers note that the move reflects a broader trend of fintech firms entering the derivatives space, challenging established exchanges by leveraging technology and user‑friendly platforms.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.