Key Takeaways
- Kalshi announced a default $2,500 monthly deposit limit for users aged 18–20, but they can adjust it or opt out.
- New safeguards include alerts when young traders commit more than 25% of a balance exceeding $1,000 to one trade.
- The Roosevelt Institute estimated $583.5 million in retail losses from July 2021 to May 2026, but Kalshi disputes its methodology.
Kalshi is introducing a default $2,500 monthly deposit limit for customers aged 18 to 20 as mounting scrutiny of prediction-market losses pushes the exchange toward stronger consumer protections.
The announcement follows a Roosevelt Institute study estimating $583.5 million in losses among traders it classified as retail participants.
Kalshi disputes that classification and the study’s conclusions. The deposit threshold also comes with an important qualification: young customers can change it or opt out.
CEO Tarek Mansour has meanwhile signaled openness to additional safeguards, including a higher minimum trading age.
Young Accounts Get Deposit Limits and Trading Alerts
Kalshi announced the measures on Oct. 27, saying customers aged 18 to 20 would automatically enter special accounts offering additional protections and education.
Alongside the default deposit limit, new traders with balances exceeding $1,000 will receive diversification alerts when they put more than 25% of their balance into one trade.
The company said the features would roll out over the following days. It also announced partnerships with Parent ProTech and ConnectSafely to produce prediction-market guides for parents.
However, the $2,500 figure is not an absolute ceiling on deposits. A Kalshi spokesperson said that affected customers could increase, decrease or remove the limit.
The spokesperson said young customers encounter a deposit process displaying monthly deposits and profits or losses, followed by a mandatory cooling-off period. Once monthly deposits reach $2,500, subsequent deposits trigger that process again.
Kalshi also offers trading breaks, self-exclusion and self-imposed limits. Its existing interventions for risky behavior can escalate from educational resources to trading blocks, the company said.
Study’s $583 Million Estimate Faces Methodology Dispute
The Roosevelt Institute published its analysis in July, examining more than 400 million trades representing over $32 billion in volume.
Its researchers estimated that market takers lost $583.5 million between Kalshi’s July 2021 launch and May 15, 2026. They used market-taker activity as a proxy for retail trading.
Sports accounted for $371.6 million of the estimated losses, while complex contracts, including most parlays, contributed more than $100 million. The researchers argued that sophisticated participants captured disproportionate gains.
Those figures cover several years of activity, rather than losses incurred solely in 2026. They also do not isolate customers under 21.
Kalshi rejected the findings in a July 10 response, arguing that order classifications cannot reliably identify ordinary users or professionals.
A market maker places an order that rests on the exchange, while a taker executes against an available order. Kalshi says casual app users can therefore appear as makers, while institutional traders can appear as takers.
That distinction means the $583.5 million figure remains a disputed estimate of retail losses, rather than a verified total drawn from individually identified retail accounts.
Mansour Opens Door to More Guardrails
Speaking to Bloomberg’s The Circuit, Mansour acknowledged concerns about customers losing money and said Kalshi was discussing further protections with regulators.
“Our message is like, ‘Let’s regulate it, let’s figure out the right guardrails and where there are gaps,’” he said.
He also expressed openness to regulators raising the minimum age to 21.
Kalshi operates under Commodity Futures Trading Commission oversight and currently permits adults as young as 18 to trade.
Mansour argues that its exchange model distinguishes it from sportsbooks because customers trade against other participants, rather than the platform itself.
Nevertheless, that structure does not eliminate losses or compulsive behavior. The immediate test is whether optional deposit limits, cooling-off periods and trading alerts meaningfully change how vulnerable customers use the platform.
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The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
