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Getting started

Signing up and browsing markets is free. Theta Labs does not charge a platform fee to create an account or view market data. When you trade, the underlying exchanges (Polymarket and Kalshi) may apply their own fees, which are reflected in the price you see. Options trading uses a separate paper trading balance, so no real money is at risk there.
No. Theta Labs uses embedded wallets powered by Privy, so you can sign in with your email address or a social account (such as Google). A wallet is created and managed for you automatically — you never need to install MetaMask, Phantom, or any other browser extension. If you already have a self-custody wallet you prefer, you can connect it instead.
Theta Labs is a front-end platform that aggregates Polymarket and Kalshi. Your eligibility to trade depends on the terms of service of each underlying exchange. Kalshi is a US-regulated exchange and restricts access to eligible US residents. Polymarket’s availability varies by jurisdiction. Check the terms of service for Polymarket and Kalshi directly to confirm whether trading is permitted where you live.

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How prediction markets work

Prices on prediction markets represent the crowd’s implied probability that an event will resolve YES. For example, a price of 65¢ per YES share means the market collectively believes there is roughly a 65% chance the event happens. Prices shift continuously as traders buy and sell based on new information, the same way prices move in financial markets. On Polymarket, trades are matched through a Central Limit Order Book (CLOB); on Kalshi, a similar order-matching mechanism is used.
You profit when you buy shares at a price lower than the eventual settlement value. Each YES share pays out 1.00iftheeventresolvesYES,andeachNOsharepaysout1.00 if the event resolves YES, and each NO share pays out 1.00 if the event resolves NO. If you buy YES shares at 40¢ and the event resolves YES, you collect $1.00 per share — a 60¢ gain per share. If the event resolves NO, your shares expire worthless. You can also sell your position before resolution to lock in a gain or cut a loss, as long as there is a buyer on the other side.
When the real-world event that a market tracks reaches its outcome, the market is resolved. Shares on the winning side pay 1.00each;sharesonthelosingsidepay1.00 each; shares on the losing side pay 0.00. The payout is credited to your wallet automatically. For example, if a market asks “Will Team A win the championship?” and Team A wins, all YES shares pay $1.00 and all NO shares expire worthless.
Occasionally a market is cancelled before resolution — for example, if the underlying event is postponed indefinitely or the market was created in error. In that case, all share positions are refunded at their original purchase price, so you neither gain nor lose on the trade. Polymarket and Kalshi each have their own cancellation policies; the specific rules are published in their respective terms and market descriptions.
No, not in spot trading. When you buy YES or NO shares, the maximum you can lose is the amount you paid for those shares. Your downside is always capped at your initial spend. In options trading, the same rule applies when you buy a call or put — the premium you pay is your maximum loss. However, if you sell options (sell premium), you are required to post collateral to cover your maximum potential obligation, and your loss is limited to that collateral amount.

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Platforms and markets

Both are prediction market exchanges, but they operate under different regulatory frameworks and on different blockchains.
  • Polymarket is a decentralized platform built on the Polygon blockchain. It uses USDC.e as its settlement currency and operates a Central Limit Order Book (CLOB) for trade matching. Polymarket is not available to US residents.
  • Kalshi is a US-regulated exchange (CFTC-regulated) that settles in USDC on Solana. It is available to eligible US residents and operates under stricter compliance rules.
Theta Labs aggregates markets from both exchanges into a single interface, so you can view and trade across both without switching platforms.
Each exchange independently decides which markets to list based on its own editorial process, regulatory constraints, and user demand. Kalshi, as a US-regulated exchange, must obtain CFTC approval for each new contract type, which limits the speed and variety of markets it can offer. Polymarket lists markets more freely. As a result, some topics appear exclusively on one platform. Theta Labs surfaces whichever markets each exchange has available and does not control what either exchange lists.
A narrative is a curated group of related prediction markets bundled together around a common theme — for example, all markets related to a major election, a sports season, or a macroeconomic event. Instead of researching and trading each market individually, you can trade the narrative as a single position. The narrative price reflects the aggregated movement of its constituent markets, giving you broad exposure to a theme with one trade.
Deposit times depend on the network you are sending from and current blockchain congestion. Deposits on Polygon (used for Polymarket trading) typically confirm within a minute or two. Deposits on Solana (used for Kalshi trading) are usually faster, often confirming in under 30 seconds. If your deposit has not appeared after 15 minutes, check the transaction status on the relevant block explorer using your transaction hash. If the transaction is confirmed on-chain and the funds still have not appeared, contact Theta Labs support.

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Options trading

Paper trading lets you practice trading strategies using virtual money — no real funds are at risk. On Theta Labs, options trading is currently paper trading. You start with a $1,000 virtual balance and can buy calls, buy puts, and sell premium exactly as you would in live trading. Your paper P&L is tracked separately from your real spot trading balance. Paper trading is designed so you can learn the mechanics and test strategies before live options trading launches.
In traditional finance, a strike price is the price at which an option can be exercised. In prediction markets, the equivalent is a probability threshold. Because prediction market prices represent implied probabilities (expressed as cents per share, i.e., a percentage), the strike price is stated as a probability level rather than a dollar price.For example, a call option with a 40% strike on a given market means the market’s probability must trade above 40% for the call to be in the money and potentially profitable. A put option with a 60% strike means the market must trade below 60% for the put to be in the money. The strike is simply the threshold the underlying market price must cross for your option to gain value.