Institutional Prediction Markets Trading
Kemet gives institutional desks one platform for trading prediction markets on Kalshi and Polymarket, through a trading UI, a REST and WebSocket API, and execution algorithms. Event-contract positions sit in the same portfolio and risk view as the crypto options, perpetuals, futures and spot a desk already trades on Deribit, OKX, Binance, Coinbase, Bullish, Hyperliquid and Derive. Desks connect their own Kalshi and Polymarket accounts with their own API keys, and Kemet never holds client funds or takes the other side of a trade.
Why desks want prediction markets inside their existing stack
Event contracts have become a real hedging and expression tool. A fund running a BTC options book can now buy or sell a Kalshi or Polymarket contract on where BTC settles on a given date, on a Fed decision, or on a CPI print, and that position interacts directly with the rest of its risk. The problem is operational. Each venue has its own login, its own order types and its own position format, so the event-contract book usually lives in a separate browser tab and a spreadsheet, out of sight of the risk system that watches everything else.
Kemet removes that split. Prediction markets become two more venues in a platform that already covers the full trade lifecycle: discovery of markets and prices, execution, and position management.
What institutional prediction markets trading looks like on Kemet
Discovery
Kalshi and Polymarket markets are listed alongside listed derivatives in the same search, so a trader looking at BTC can see the Deribit options chain, the perp funding on Hyperliquid and the relevant event contracts together. New markets sync into Kemet the same day they go live on the venue, which matters on prediction markets because many contracts are short-dated and new series list constantly.
Execution
Orders route to each venue from one ticket in the UI or one API. Event-contract books are often thin away from the touch, so working size matters more than it does on a deep perp book. Desks can work orders with time-sliced and iceberg-style execution algorithms instead of lifting the visible offer in one clip, and can split an order across venues when Kalshi and Polymarket list economically similar contracts, after checking that each venue’s resolution source and timing match closely enough for the desk’s purposes. Larger trades that should not touch the book at all are covered in our guide to block trading on Kalshi and Polymarket.
Position management
Fills land in the same portfolio and risk view as the rest of the book, with positions and PnL normalized across venues. A desk long a Polymarket contract on ETH finishing above a strike and short ETH calls on Deribit sees both legs, and the net exposure, on one screen. For the cross-venue risk model in more detail, see cross-venue portfolio risk for digital-asset derivatives.
Venues and instruments in one book
- Kalshi event contracts, traded on the venue’s central limit order book with your own Kalshi account and API key. Our Kalshi API guide for institutional desks covers the connection in detail.
- Polymarket event contracts, on Polymarket US (a CFTC-designated contract market) or Polymarket’s international venue, through whichever Polymarket account your firm is eligible for and already holds. Polymarket’s international venue is not available to US persons. See Polymarket for institutional traders for the operational setup.
- Crypto options on Deribit, OKX, Binance, Coinbase and Derive, with RFQ on Deribit, Paradigm and Derive and a multi-leg package builder.
- Perpetuals, dated futures and spot across Deribit, OKX, Binance, Coinbase, Bullish and Hyperliquid.
Kalshi and Polymarket differ in regulation, settlement, collateral and API design, and the choice between them is rarely either/or. Our Kalshi vs Polymarket comparison for institutional desks sets the two side by side.
Hedging event contracts against crypto derivatives
The most common workflow we see is a crypto contract on a prediction market paired with a listed derivative. A Kalshi or Polymarket contract on BTC closing above a level on a date is economically close to a digital option, and desks price it against the Deribit volatility surface. When the event contract trades rich or cheap to the options-implied probability, the desk takes the prediction-market side and hedges with options or perps on another venue, all from one platform. Kemet’s auto-hedging with thresholds and its Vega and Gamma targeting tools run on the derivatives side of that trade. Rules-based hedging can fire directly on event-contract fills. The full workflow is in hedging Kalshi and Polymarket crypto contracts with Deribit options.
Your accounts, your keys, your funds
Kemet is a technology provider. It is not an exchange, broker, FCM or counterparty. Desks open and fund their own accounts at Kalshi and Polymarket, and at every other venue, and connect them to Kemet with API keys they control. Kemet never takes custody of client assets: it can trade and read positions but cannot move money, and on centralized venues it rejects any API key that carries withdrawal rights. Collateral stays at the venue, in the desk’s own wallet, or with the desk’s own clearing relationship. Kemet is SOC 2 Type II compliant.
Built for API desks and AI agents
Everything available in the UI is available over Kemet’s REST and WebSocket API, so a systematic desk can quote, trade and pull positions on Kalshi and Polymarket through the same integration it already uses for Deribit or OKX. Kemet also runs an MCP server, which lets AI agents query markets, positions and risk and stage orders through a defined tool interface. Teams experimenting with agent-driven research on event contracts can give an agent read access to the whole book without writing a separate integration per venue.
FalconX, Kalshi and Kemet
On August 27, 2026, FalconX and Kemet announced a collaboration with Kalshi to expand institutional access to Kalshi event contracts, with Kemet providing the execution and risk layer. Read the FalconX and Kemet announcement for the details.
FAQ
Does Kemet hold client funds or act as counterparty on prediction markets?
No. Clients trade through their own Kalshi and Polymarket accounts with their own API keys. Funds stay at the venue or with the client’s clearing firm, and Kemet is never on the other side of a trade.
Can I trade Kalshi and Polymarket through an API?
Yes. Kemet exposes both venues through one REST and WebSocket API, the same one used for its crypto derivatives venues, so a single integration covers event contracts and listed derivatives.
Can I see event contracts and crypto options in one risk view?
Yes. Kalshi and Polymarket positions appear in the same portfolio as positions on Deribit, OKX, Binance, Coinbase, Bullish, Hyperliquid and Derive, with PnL normalized across venues.
Do I need a separate Kalshi or Polymarket account?
Yes. Kemet connects to accounts you already hold. Onboarding with each venue, including KYC and any FCM relationship, stays between your firm and that venue. Which venue a firm can use depends on where it is organized and located; Polymarket’s international venue blocks US persons.
Which execution algorithms work on event contracts?
Time-sliced and iceberg-style algorithms are available on Kalshi and Polymarket, using the same controls as on Kemet’s derivatives venues, and orders can be routed across both venues when they list economically similar contracts whose resolution source and timing match closely enough for the desk’s purposes.
If your desk trades crypto derivatives and wants Kalshi and Polymarket in the same book, the fastest way to judge fit is to see it running. Book a demo and we will walk through it on your own venue accounts.
More on the platform: Kemet platform overview.