Kalshi’s ETH Perpetual Volume Dispute and CFTC Rebate Filing

Kalshi faced fresh allegations of wash‑trading after a trader highlighted a large discrepancy between reported ETH perpetual‑future volume and open interest. The exchange responded by separating its prediction‑market and perpetual‑future products and referencing a recent CFTC filing that outlines rebate eligibility and anti‑wash‑trade safeguards.

Trader’s Volume Claim

Trader Beni posted that Kalshi’s ETH‑PERP market showed roughly $538.6 million of 24‑hour trading volume while open interest was only about $3.1 million, a ratio of roughly 174 to 1. He argued that such a ratio was unusually high and suggested the volume was fabricated.

Kalshi’s Response

Kalshi’s crypto lead, posting as IcoBeast, said the figures mixed two distinct products: prediction‑market contracts (measured in contract count) and perpetual futures (margin‑based contracts). The exchange noted that its prediction‑market volume is not tied to a dollar‑denominated rebate program, whereas the perpetual‑future incentives are separate.

CFTC Rebate Program Details

• Filed on September 2 and certified on September 16.
• Applies to all perpetual markets, including crypto and metals, through December 31 unless amended.
• Eligible taker fees are rebated to 0.3 basis points (0.003 %).
• Eligible makers receive rebates that also result in a net 0.3‑basis‑point payment.
• Fees from self‑matching, wash‑trading, pre‑arranged trades or other abusive practices are excluded from rebate eligibility.
• The Chief Regulatory Officer can revoke program status and pursue disciplinary action.

Regulatory Context

The CFTC’s August 12 staff advisory warned that steep volume thresholds and rebate structures could increase wash‑trading risk, urging exchanges to implement real‑time surveillance and controls. Kalshi’s filing states it has reviewed manipulation risks, will monitor Self‑Clearing Members closely, and will exclude suspicious trades from rebates.

Other Considerations

Kalshi’s ETH perpetual market launched in June and has since expanded to Bitcoin and 17 altcoin contracts. Earlier reporting indicated that perpetual volume exceeded $5.5 billion in the first two weeks of rollout, a figure supplied by Kalshi via Bloomberg.

Separate reports noted a commercial relationship between Kalshi and Jump Trading, but no evidence links Jump to the disputed ETH‑PERP volume.

Conclusion

While the trader’s ratio raises questions, Kalshi’s public documentation and CFTC‑certified rebate program outline specific safeguards against wash‑trading. No enforcement action or independent audit has confirmed the alleged volume manipulation as of the latest filings.