The appeal of prediction markets like Kalshi isn't just about being right—it’s about market efficiency. To maintain that efficiency, Kalshi runs two distinct reward systems: the Liquidity Incentive Program and the Volume Incentive Program.
If you've used a traditional sportsbook, you're likely familiar with loyalty programs like DraftKings Dynasty or Caesars Rewards, where you earn "crowns" or "tier credits" for every bet you place.
However, while sportsbooks reward you for your loyalty (how much you lose or wager over time), Kalshi’s programs reward you for your utility (how much you help the market function).
The Action Network is taking a closer look at Kalshi's incentive programs, and we'll show you how to earn rewards based on liquidity and volume.
If you need a refresher on how Kalshi works, check out this guide from The Action Network.
Liquidity vs. Volume: The Simple Breakdown
To understand these programs, you first need to understand the difference between intent and action.
Liquidity is the "intent" to trade. It represents the orders sitting on the "books" (the "Buy" and "Sell" columns) waiting for someone to click them. High liquidity means there are plenty of contracts available at fair prices, allowing traders to enter or exit a position without significantly affecting the price or "moving the market" (slippage).
Volume is the "action" of trading. It's the total number of contracts that have actually changed hands. High volume shows that a market is active and that many people are currently expressing a view on the outcome.
Think of a grocery store: High liquidity is like having a massive bin of apples all priced at $1.00. Because the bin is so full, you can buy 100 apples without the store raising the price on you. Volume is simply the total number of apples that were scanned at the register that day. Low liquidity would be being able to buy 1 apple for $1.00, but if you want 10 apples, the next 9 cost $2.00 each. Buying in bulk makes the price "move" (jump) immediately.
Related Reads: Liquidity vs. Accuracy and Open Interest vs. Volume
Now that you understand liquidity vs. volume at Kalshi, let's examine the rewards programs that pay for management of these financial indicators:
Kalshi's Liquidity Incentive Program: Getting Paid to Wait
The Kalshi liquidity incentive program rewards you for being a "Market Maker." Unlike a sportsbook’s "Reload Bonus," which just gives you extra funds to play with, this program pays you for providing a service: placing resting orders (limit orders) that stay on the books.
How You Benefit
Even if your order is never "filled" (bought by someone else), you can still earn money. Kalshi takes a "snapshot" of the order book every second. If your order is sitting near the best available price and meets the size threshold, you earn points. At the end of the period, you receive a share of a cash pool.
Practical Example: Imagine a market on "Will the Federal Reserve cut rates in March?" The best "Yes" price is $0.60. You place a limit order to buy 500 contracts at $0.59. Because your order is right next to the best price, you are "deepening" the market. Even if nobody sells to you, Kalshi pays you for keeping that order there, as it gives other traders a tighter "spread" to work with.
Kalshi's Volume Incentive Program: Active Trading Cashback
The Volume Program at Kalshi is the closest relative to a sportsbook's loyalty program, such as Fanatics’ FanCash. It is essentially a "cashback" system that pays you based on how much you actually trade.
How You Benefit
This program rewards you for being the one who actually completes the transaction. For every contract you trade (between the prices of $0.03 and $0.97), you earn a proportional share of a "Volume Pool." It’s designed to make trading more affordable by effectively rebating a portion of your activity back to you.
Practical Example: You decide to buy 2,000 contracts of "Will the S&P 500 close up today?" Because you actively completed a trade, those 2,000 contracts are added to your total volume. At the end of the month, if you represented 5% of the total volume in that market, you get 5% of the reward pool (up to $0.005 per contract).
Just make sure to watch the price if you want to benefit from this program, as Volume rewards only count for trades between $0.03 and $0.97. If a market is a "sure thing" ($0.99) or a "long shot" ($0.01), it generally won't qualify for volume cashback.
You can trust Kalshi and its incentive programs thanks to its CFTC-regulated status.
Which Kalshi Incentive Program Should You Use?
Choosing between the Liquidity vs. Volume incentive programs at Kalshi depends on your trading style:
| Feature | Liquidity Program | Volume Program |
| Your Goal | Provide stability/better prices. | Express an opinion/trade a view. |
| Key Action | Place a Limit Order and wait. | Execute a Market or Limit Order. |
| Best For | Patient traders or "Yield Seekers." | High-frequency or directional traders. |
As you use the platform, you'll naturally take advantage of both platforms. All you have to do to qualify is register with the Kalshi promo code, and make a qualifying deposit and trade.
