perpX

The Secondary Market for Kalshi on Solana

Trade Kalshi prediction markets with up to 40x leverage on Solana. A decentralized secondary market bringing real-world prediction markets on-chain on Solana.

Why perpX • Kalshi Integration • Features • Getting Started • How It Works

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Why perpX?

Kalshi is the first CFTC-regulated prediction market exchange in the US, offering markets on elections, economics, crypto, weather, and more. However, Kalshi has limitations:

Limitation	perpX Solution
No leverage trading	Up to 40x leverage on any market
US-only access	Permissionless - anyone with a Solana wallet
Centralized custody	Non-custodial - your keys, your funds
Limited trading hours	24/7 trading on Solana
No short selling (limited)	Full long/short on any outcome

perpX creates a decentralized secondary market where anyone can trade Kalshi market outcomes with leverage, bringing the world's most liquid prediction markets to DeFi.

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Kalshi Integration

How Markets Are Synced

perpX mirrors Kalshi markets on-chain with a 1:1 mapping:

Kalshi Market (KXBTC-25MAR28-B100000)
         ↓
    perpX Syncs
         ↓
On-Chain Market (Solana)
         ↓
  Trade with Leverage

Real-Time Price Feeds

• Mark prices are derived from Kalshi's live market prices
• Settlement prices are determined by Kalshi market outcomes
• Markets expire and settle based on Kalshi's official resolution

Supported Market Categories

Category	Kalshi Series	Example Markets
Federal Reserve	KXFED	Will the Fed raise rates?
Inflation	KXCPI	CPI above 3%?
Employment	KXJOBS	Unemployment rate predictions
GDP	KXGDP	Q4 GDP growth above 2%?
Bitcoin	KXBTC	BTC above $100k by March?
Ethereum	KXETH	ETH price milestones
S&P 500	INX	Index price targets
Nasdaq	NASDAQ100	Tech index predictions

Market Registry

Every Kalshi market is mapped to an on-chain market via the Market Registry:

{
  "KXBTC-25MAR28-B100000": {
    "marketIndex": 52,
    "marketPda": "7xK2...",
    "title": "Bitcoin above $100,000?",
    "expiryTimestamp": 1743148800
  }
}

This ensures:

• Consistent market identification across platforms
• Automatic expiry matching with Kalshi
• Proper settlement based on Kalshi outcomes

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Features

Leveraged Trading

• Trade with 1x to 40x leverage on any Kalshi market
• Amplify your conviction on prediction market outcomes
• Capital-efficient trading with isolated margin

Long & Short

• Go Long (YES): Profit when the outcome probability increases
• Go Short (NO): Profit when the outcome probability decreases
• Full flexibility to trade either direction

DeFi Native

• Non-custodial: Smart contract holds funds, not a centralized exchange
• Permissionless: No KYC, no geographic restrictions
• Transparent: All trades and positions visible on-chain
• Composable: Built on Solana for future DeFi integrations

Risk Management

• Isolated Margin: Each position has dedicated collateral
• Liquidation Engine: Automated liquidations protect the protocol
• Insurance Fund: Backstop for under-collateralized positions
• No Funding Rates: Unlike perps, no ongoing funding payments

Forced Expiry

• All positions settle at Kalshi market expiration
• No indefinite holding - markets have defined end dates
• Settlement based on real-world Kalshi outcomes

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How It Works

1. Market Creation

Kalshi publishes market → perpX syncs to Solana → On-chain market created

2. Trading

User deposits USDC → Opens leveraged position → PnL tracks Kalshi price

3. Settlement

Kalshi market expires → Outcome determined → perpX settles all positions

Price Example

If you believe Bitcoin will be above $100,000 by March 28th:

Kalshi Price	Your Position	Leverage	Collateral	Potential PnL
45¢ (45% YES)	Long 100 contracts	10x	$4.50 USDC	+$55 if YES wins

If the market moves to 60¢:

• Without leverage: +$15 profit (33% return)
• With 10x leverage: +$150 profit (333% return)

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Architecture

perpX/
├── programs/               # Solana smart contracts (Anchor)
│   └── prediction-perps/
│       ├── instructions/   # open_position, close_position, liquidate, settle
│       ├── state/          # Market, Position, Config accounts
│       └── utils/          # Price calculations, margin checks
│
├── app/                    # Next.js frontend
│   ├── components/         # Trading UI, charts, position management
│   ├── lib/
│   │   ├── kalshi.ts       # Kalshi API integration
│   │   └── market-registry.json  # Kalshi → On-chain mapping
│   └── hooks/              # useTrading, usePositions, useKalshiMarkets
│
├── keeper/                 # Automated bot service
│   ├── liquidator.ts       # Monitors and liquidates risky positions
│   ├── settler.ts          # Settles expired markets
│   └── priceUpdater.ts     # Syncs Kalshi prices on-chain
│
└── scripts/
    ├── sync-kalshi-markets.ts   # Bulk sync Kalshi markets
    └── create-new-market.ts     # Create individual market

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Getting Started

Prerequisites

• Node.js 18+
• Solana wallet (Phantom, Solflare, etc.)
• Devnet USDC from Circle Faucet

Quick Start

1. Clone and install

   git clone https://github.com/e-man07/kalshi.git
   cd kalshi/prediction-perps
   yarn install
   cd app && npm install

2. Run the frontend

   npm run dev

3. Get test USDC

   • Visit faucet.circle.com
   • Select Solana Devnet
   • Enter your wallet address

4. Start trading

   • Connect wallet at localhost:3000
   • Browse Kalshi markets
   • Open a leveraged position

Syncing New Kalshi Markets

To add new Kalshi markets to perpX:

# Sync all markets from supported categories
npx ts-node scripts/sync-kalshi-markets.ts

# Or add a specific market
npx ts-node scripts/create-new-market.ts KXBTC-25MAR28-B100000

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Smart Contract

Program ID: C5aeAdDofqXDwf39wPz21DXajvgu993UeghATenu9xyN

Instructions

Instruction	Description
create_market	Create on-chain market linked to Kalshi ticker
open_position	Open leveraged long/short position
close_position	Close position at current mark price
add_margin	Add collateral to reduce liquidation risk
liquidate	Liquidate undercollateralized position
settle_market	Settle market based on Kalshi outcome
claim_settlement	Withdraw funds from settled position

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Roadmap

• Core trading engine (open/close positions)
• Kalshi market sync
• Liquidation system
• Settlement system
• Cross-margin mode
• Stop-loss / take-profit orders
• More Kalshi market categories
• Mainnet deployment

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Tech Stack

Component	Technology
Smart Contracts	Rust, Anchor Framework
Frontend	Next.js 14, React, TypeScript
Styling	Tailwind CSS
Charts	TradingView Lightweight Charts
Blockchain	Solana
Collateral	USDC
Data Source	Kalshi API

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Links

• Kalshi: kalshi.com - Source prediction market exchange
• Solana: solana.com - Blockchain platform
• Circle Faucet: faucet.circle.com - Get devnet USDC

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Disclaimer

perpX is an experimental DeFi protocol on Solana devnet. It is not affiliated with Kalshi Inc. Trading leveraged positions carries significant risk. Use at your own risk.

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Bringing Kalshi to DeFi
Built on Solana