Phantom US Prediction Markets Terms & Disclosures

• Last Updated Oct 22, 2026

1. Overview

Prediction markets are information aggregation mechanisms that allow participants to trade on the outcomes of future events. In the United States, event contracts are regulated by the Commodity Futures Trading Commission ("CFTC"). Phantom provides access to event contracts through a commercial partnership with KalshiEX, LLC, a CFTC-registered Designated Contract Market ("DCM") and Kalshi Klear LLC, a CFTC-registered derivatives clearing organization (“DCO”) (together, "Kalshi").

By accessing or participating in prediction markets through Phantom, you acknowledge that you have read, understood, and agreed to these disclosures in their entirety, including the risk disclosure statement, as well as Phantom’s Terms of Use and Privacy Policy, both of which are incorporated herein. In the event of a conflict between these Disclosures and the Terms of Use, these Disclosures control solely as to that specific subject matter. In all other respects, the Terms of Use govern, including without limitation its provisions relating to eligibility, prohibited and restricted jurisdictions, sanctions compliance, dispute resolution, arbitration, class-action waiver, disclaimers, and limitations of liability.

2. Our Partner Relationship and Conflicts of Interest

Phantom has entered into a commercial agreement with Kalshi, a CFTC-registered Designated Contract Market. As part of this agreement, Phantom makes available Kalshi’s event contracts. Users will onboard through Phantom’s user interface and, through that flow, become direct members of Kalshi subject to Kalshi’s due diligence requirements and review. Users will share personal information directly with our service provider, Kalshi and Kalshi's service provider(s), as required for regulatory diligence purposes. Any personal information users submit will be treated in line with Phantom’s Privacy Policy. Once shared with Kalshi, Kalshi will treat and store such information in accordance with the Kalshi privacy policy. Under Phantom’s agreement with Kalshi, Kalshi shares with Phantom a portion of the exchange fees Kalshi receives on the event contracts traded via the Phantom interface.

Because Phantom earns revenue from your trading activity, we have a financial incentive for you to trade more. This arrangement creates a potential conflict of interest. You should be aware of this relationship when evaluating how Phantom presents trading opportunities, markets, or features. Phantom has also agreed to give Kalshi's markets prominent placement on Phantom's platform for a period of time following the launch of this feature, which may affect which markets and products you see featured. Any such placement is not a recommendation or endorsement of Kalshi or any contracts offered by Kalshi.

In addition to the rebate described above, Phantom may charge you a separate fee or commission when you trade event contracts using Phantom. Any additional fees will be clearly disclosed to you at the time of your transaction.

Phantom does not act as your fiduciary or financial advisor in connection with event contract trading. Phantom does not take positions against users, operate as a market-maker or house, or otherwise benefit from user losses beyond the arrangement described above.

You are not required to use Phantom to trade on Kalshi. You may establish a direct account relationship with Kalshi and trade independently of Phantom at any time.

3. Trading Risks

Trading event contracts involves significant risks. Trading may not be suitable for all users. You should carefully consider whether trading is appropriate for you in light of your experience, financial objectives, financial resources, and other relevant circumstances. Risks include, without limitation:

Loss of Capital. You may lose all funds you deposit or use to purchase event contracts.
Market Volatility. The value of event contracts can be highly volatile and may change rapidly based on publicly available information, market sentiment, and other factors outside your control.
Liquidity Risk. Some markets may have limited liquidity, which may make it difficult to enter or exit a position at a desired price or at all.
Resolution Risk. Market resolution depends on external data sources and third-party infrastructure. Each event contract is governed by Kalshi's rulebook and contract specifications, which are the controlling documents for how a market resolves. Indexing or sourcing failures, data manipulation, delayed data feeds, or incorrect information could result in improper market resolution, disputed outcomes, or financial losses. Phantom cannot guarantee the accuracy, timeliness, or reliability of external data sources used for market resolution. Disputes regarding market resolution should be directed to Kalshi, as Kalshi's rulebook governs resolution outcomes.
Counterparty and Platform Risk. The clearing and settlement infrastructure is operated by Kalshi. Disruptions, outages, or failures of Kalshi's systems could affect your ability to trade, settle, or redeem contracts.
Settlement Risk. Kalshi may not support programmatic deposits and withdrawals, or CASH as a deposit method, at all times. To redeem payouts, participants must trade their expired outcome tokens for the stablecoin used to open their position. The settlement trade price may differ from the original contract price due to market movement, liquidity conditions, or other factors.
Regulatory Risk. The regulatory environment for event contracts and prediction markets in the United States continues to evolve rapidly. The CFTC actively surveils prediction markets using AI-powered pattern analysis, blockchain tracing tools, and market abuse detection systems. Changes in law, regulation, enforcement posture, or regulatory interpretation could affect the availability of markets, your ability to trade, and the value of your positions. Users who violate trading prohibitions (including insider trading rules) may be subject to individual enforcement action by the CFTC.
Technology and Custody Risk. Phantom is a non-custodial wallet and does not take custody of your funds or prediction market positions. Blockchain network congestion, smart contract vulnerabilities, wallet access issues, or software errors could affect your ability to trade or access your positions. You are solely responsible for maintaining the security of your wallet and private keys.

4. Risk Disclosure Statement

The risk of loss in trading commodity futures contracts and swaps (including event contracts) can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should be aware of the following points:

(1) You may sustain a total loss of the funds that you deposit to establish or maintain your position(s), and you may incur losses beyond these amounts.

(2) The funds you deposit with a derivatives clearing organization (DCO) for trading are not FDIC insured in the event of the bankruptcy or insolvency of the DCO, or in the event your funds are misappropriated.

(3) The funds you deposit with a DCO are not protected by the Securities Investor Protection Corporation even if the DCO is registered with the Securities and Exchange Commission as a broker or dealer.

(4) The funds you deposit with a DCO are not held by the DCO in a separate account for your individual benefit. DCOs commingle the funds received from customers in one or more accounts and you may be exposed to losses incurred by other customers if the DCO does not have sufficient capital to cover such other customers' trading losses.

(5) The funds you deposit with a DCO may be invested by the DCO in certain types of financial instruments that have been approved by the Commission for the purpose of such investments. Permitted investments are listed in Commission Regulation 1.25 (17 CFR 1.25) and include: U.S. government securities; municipal securities; certain money market funds; certain foreign sovereign debt; and U.S. Treasury exchange-traded funds. The DCO may retain the interest and other earnings realized from its investment of customer funds. You should be familiar with the types of financial instruments that a DCO may invest customer funds in.

(6) DCOs are permitted to deposit customer funds with affiliated entities, such as affiliated banks, securities brokers or dealers, or foreign brokers. You should inquire as to whether your DCO deposits funds with affiliates and assess whether such deposits by the DCO with its affiliates increases the risks to your funds.

(7) You should consult your DCO concerning the nature of the protections available to safeguard funds or property deposited for your account.

(8) Under certain market conditions, you may find it difficult or impossible to close a position.

(9) All derivatives positions involve risk, and a “spread” position may not be less risky than an outright “long” or “short” position.

(10) In addition to the risks noted in the paragraphs enumerated above, you should be familiar with the DCO you select to entrust your funds for trading futures positions.

THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF THE COMMODITY MARKETS.

5. No Investment Advice or Recommendations

Phantom does not provide investment advice, financial advice, legal advice, or tax advice. Nothing in these disclosures or in the Phantom application constitutes a recommendation, solicitation, or offer to buy or sell any event contract or other financial instrument. All market information, prices, and data are provided for informational purposes only.

You are solely responsible for your own research, analysis, and trading decisions. You should only trade if you have independently determined that trading is consistent with your financial situation, investment objectives, and risk tolerance, and you are encouraged to consult with qualified advisors as appropriate.

Profits and losses from trading event contracts may be subject to taxation in your jurisdiction. You are solely responsible for determining and fulfilling any applicable tax reporting and payment obligations.

6. Prohibited Conduct and Insider Trading Affirmation

You may not trade any event contract if you have access to material, non-public information: that is, information that is not yet available to the general public and that a reasonable person would likely consider important in making a trading decision, and that may give you an advantage in predicting the outcome of an event. This includes information obtained through privileged access, confidential sources, or advance knowledge of events that could affect market resolution.

Users with potential conflicts of interest or special knowledge regarding market outcomes must refrain from participation. For example:

You may not trade a sports-related event contract if you are a player, coach, employee, or staff of the league, association, or organization governing the event ("Related Person"), or an immediate family member or household member of a Related Person.
You may not trade a political or economic event contract if you have access to non-public government, legislative, or regulatory information that would determine the outcome.
You may not trade any event contract where your professional role, position, or access gives you material advance knowledge of the outcome.

Prohibitions will vary depending on the type of event contract (e.g., political, economic, cultural, or other category). Additional prohibitions specific to a given market will be disclosed on the event contract details page.

By participating in trading an event contract, you affirm that you are not prohibited from trading the specified event contract.

7. No Endorsements or Affiliations

The inclusion of any brand, team, person, organization, entity, or event as the subject of a prediction market does not constitute an endorsement, affiliation, partnership, or recommendation by Phantom. Except as expressly disclosed in Section 2 above with respect to our commercial relationship with Kalshi, Phantom maintains no business relationships, sponsorships, or affiliations with any subjects of any markets.

8. Eligibility and Jurisdictional Limitations

Prediction markets through Phantom are not intended for users under the age of 18 or the age of legal majority in your jurisdiction. Prediction markets in Phantom via Kalshi are only available to users in eligible jurisdictions within the United States. You are responsible for ensuring that your participation complies with all applicable federal and state laws and regulations. Phantom reserves the right to restrict access to prediction markets in any jurisdiction at any time without notice.

9. Regulatory Information

Event contracts accessible through Phantom are offered through Kalshi, a CFTC-registered DCM and DCO. Kalshi is responsible for compliance with all applicable CFTC regulations governing event contracts, including rules regarding market integrity, customer protections, and reporting requirements.

Phantom is not a CFTC-registered entity and does not operate a DCM, DCO, futures commission merchant, or introducing broker. Phantom's role is limited to providing wallet infrastructure and user interface access to Kalshi's markets pursuant to CFTC Staff Letter No. 26-09. You are not required to use Phantom to access Kalshi's markets, and you may establish a direct relationship with Kalshi independent of Phantom.

Questions or complaints routed through Phantom’s support channels regarding event contracts or markets, including questions regarding the resolution of a given contract may be redirected to Kalshi at [email protected].

For general information about CFTC-regulated markets and customer protections, visit www.cftc.gov.