Settlement

On Kalshi, settlement follows Market Resolution as soon as the markets team confirms the outcome and posts it publicly. Kalshi holds trader funds in segregated accounts and credits the Payout directly to each users balance, typically within one to twelve hours of market closure. The platform draws on the pre-funded collateral that counterparties deposited when they took opposing positions. Because Kalshi is a CFTC-Regulated Exchange, it operates under rules that govern how quickly funds must be returned and how collateral must be protected. Traders can then withdraw their settled funds or redeploy them into new positions. There is no manual claim step; the platform handles the transfer automatically upon determination.

On Polymarket, settlement is executed by a smart contract once the UMA Optimistic Oracle writes the final outcome on-chain. The smart contract holds all USDC Collateral deposited by market participants and distributes it according to the resolution result. Winning share holders receive $1 per share in USDC, while losing shares become worthless tokens. The entire process is trustless and non-custodial: no human at Polymarket needs to approve the transfer. The only delay occurs during the Dispute Resolution window in the oracle process. Once that window closes without a dispute, or a DVM vote concludes, settlement executes within minutes. This automation eliminates Counterparty Risk from the settlement step itself.