KalshiEX LLC

CERTIFICATIONS PURSUANT TO SECTION Sc OF THE COMMODITY EXCHANGE
ACT, 7 U.S.C. § 7A-2 AND COMMODITY FUTURES TRADING COMMISSION RULE
40.2, 17 C.ER. § 40.2

Based on the above analysis, the Exchange certifies that:
(4 The Contract complies with the Act and Commission regulations thereunder.
4 This submission (other than those appendices for which confidential treatment has been
requested) has been concurrently posted on the Exchange’s website at
https://kalshi.com/regulatory/filings.

Should you have any questions concerning the above, please contact the exchange at
ProductFilings@kalshi.com.

By: Xavier Sottile
Title: Head of Markets
Date: November 20, 2023

KalshiEX LLC


KalshiEX LLC

OPENAICEOCHANGE

Scope: These rules shall apply to this contract.

Underlying: The Underlying for this Contract is releases from OpenAlI and reporting from
Bloomberg. Revisions to the Underlying made after Expiration will not be accounted for in
determining the Expiration Value.

Instructions: OpenAlI’s blog is available here, Bloomberg is available here. These instructions
on how to access the Underlying are provided for convenience only and are not part of the
binding Terms and Conditions of the Contract. They may be clarified at any time.

Source Agency: The Source Agency is OpenAI and Bloomberg.

Type: The type of Contract is an Event Contract.

Issuance: After the initial Contract, Contract iterations will be listed on an as-needed basis at the
discretion of the Exchange and corresponding to the risk management needs of Members.

<date>: <date> refers to a calendar date specified by Kalshi. Kalshi may list iterations of the
Contract corresponding to different statistical periods of <date>.

<person>: <person> refers to a candidate for OpenAI’s board of directors specified by Kalshi.
Kalshi will rely on the financial and business press in identifying such persons.

Payout Criterion: The Payout Criterion for the Contract encompasses the Expiration Values that
OpenATI has, or will have, a new CEO by <date>. It is sufficient for an announcement to satisfy
the Payout Criterion by announcing such a move even if the change will only officially occur
following <date>. An interim CEO being announced as permanent CEO would not satisfy the
Payout Criterion.

Minimum Tick: The Minimum Tick size for the referred Contract shall be $0.01.
Position Limit: The Position Limit for the $1 referred Contract shall be $25,000 per Member.
Last Trading Date: The Last Trading Date of the Contract will be the sooner of the first 10:00

AM ET following <date> (whereupon the Last Trading Date will be 10:00 AM ET) or <date>
(whereupon the Last Trading Time will be 11:59 PM ET).

KalshiEX LLC


KalshiEX LLC

in Rule 5.12 of the Rulebook, trading shall be available at all times outside of any
maintenance windows, which will be announced in advance by the Exchange. Members
will be charged fees in accordance with Rule 3.6 of the Rulebook. Fees are charged in
such amounts as may be revised from time to time to be reflected on the Exchange’s
Website. A new Source Agency can be added via a Part 40 amendment. All instructions
on how to access the Underlying are non-binding and are provided for convenience only
and are not part of the binding Terms and Conditions of the Contract. They may be
clarified at any time. Furthermore, the Contract’s payout structure is characterized by the
payment of an absolute amount to the holder of one side of the option and no payment to
the counterparty. During the time that trading on the Contract is open, Members are able
to adjust their positions and trade freely. After trading on the Contract has closed, the
Expiration Value and Market Outcome are determined. The market is then settled by the
Exchange, and the long position holders and short position holders are paid according to
the Market Outcome. In this case, “long position holders” refers to Members who
purchased the “Yes” side of the Contract and “short position holders” refers to Members
who purchased the “No” side of the Contract. If the Market Outcome is “Yes,” meaning
that it has been announced that OpenAI’s CEO has changed or will change by <date>,
then the long position holders are paid an absolute amount proportional to the size of
their position and the short position holders receive no payment. If the Market Outcome
is “No,” then the short position holders are paid an absolute amount proportional to the
size of their position and the long position holders receive no payment. Specification of
the circumstances that would trigger a Market Outcome of “Yes” are included below in
the section titled “Payout Criterion” in Appendix A.

KalshiEX LLC


KalshiEX LLC

Attachments:

Appendix A - Contract Terms and Conditions

Appendix B (Confidential) - Further Considerations
Appendix C (Confidential) - Source Agency

Appendix D (Confidential) - Compliance with Core Principles

KalshiEX LLC


KalshiEX LLC

Settlement Date: The Settlement Date of the Contract shall be no later than the day after the
Expiration Date, unless the Market Outcome is under review pursuant to Rule 7.1.

Expiration Date: The Expiration Date of the Contract shall be the sooner of the date of the first
10:00 AM ET following the occurrence of an event that is encompassed in the Payout Criterion
or the date of the first 10:00 AM ET following <date>.

Expiration time: The Expiration time of the Contract shall be 10:00 AM ET.

Settlement Value: The Settlement Value for this Contract is $1.00.

Expiration Value: The Expiration Value is the value of the Underlying as documented by the
Source Agency on the Expiration Date at the Expiration time.

Contingencies: Before Settlement, Kalshi may, at its sole discretion, initiate the Market
Outcome Review Process pursuant to Rule 6.3(c) of the Rulebook.

KalshiEX LLC


KalshiEX LLC

November 20, 2023

SUBMITTED VIA CFTC PORTAL
Secretary of the Commission

Office of the Secretariat

U.S. Commodity Futures Trading Commission
Three Lafayette Centre

1155 21st Street, N.W.

Washington, D.C. 20581

Re: KalshiEX LLC — CFTC Regulation 40.2(a) Notification Regarding the Initial Listing
of the “Will OpenAI change its CEO by <date>?” Contract

Dear Sir or Madam,

Pursuant to Section 5c(c) of the Commodity Exchange Act and Section 40.2(a) of the regulations of the
Commodity Futures Trading Commission, KalshiEX LLC (Kalshi) hereby notifies the Commission that
it is self-certifying the “Will OpenAI change its CEO by <date>?” contract (Contract). The Exchange
intends to list the contract on a custom basis. The contract will be initially listed after close-of-business
on November 20, 2023; it is listed as November 21, 2023 because of limitations of the Commission's
online submission portal. The Contract’s terms and conditions (Appendix A) includes the following strike
conditions:
e <date> (the target date)

Along with this letter, Kalshi submits the following documents:

A concise explanation and analysis of the Contract;
Certification;

Appendix A with the Contract’s Terms and Conditions;
Confidential Appendices with further information; and
A request for FOIA confidential treatment.

If you have any questions, please do not hesitate to contact me.

Sincerely,

Xavier Sottile

Head of Markets
KalshiEX LLC
xsottile@kalshi.com

KalshiEX LLC


KalshiEX LLC

APPENDIX A —- CONTRACT TERMS AND CONDITIONS

Official Product Name: Will OpenAI change its CEO by <date>?
Rulebook: OPENAICEOCHANGE

KalshiEX LLC


KalshiEX LLC

KalshiEX LLC


KalshiEX LLC

KalshiEX LLC

Official Product Name: Will OpenAI change its CEO by <date>?
Rulebook: OPENAICEOCHANGE

Kalshi Contract Category: Science/Technology

OpenAI CEO Change

November 20, 2023

CONCISE EXPLANATION AND ANALYSIS OF THE PRODUCT AND ITS

COMPLIANCE WITH APPLICABLE PROVISIONS OF THE ACT, INCLUDING CORE

PRINCIPLES AND THE COMMISSION'S REGULATIONS THEREUNDER

Pursuant to Commission Rule 40.2(a)(3)(v), the following is a concise explanation and analysis
of the product and its compliance with the Act, including the relevant Core Principles, and the
Commission's regulations thereunder.

I.

Introduction

The “Will OpenAI change its CEO by <date>?” Contract is a contract relating to the
Chief Executive of OpenAI, a major generative AI firm. After careful analysis, Kalshi
(hereafter referred to as “Exchange”) has determined that the Contract complies with its
vetting framework.

OpenAl’s CEO, founder Sam Altman, was fired on November 17, 2023. The board is
searching for a permanent replacement. Its current CEO is Emmett Shear, a founder of
Twitch.tv, and was briefly the company’s CTO Miro Murati.

Further information about the Contract, including an analysis of its risk mitigation and
price basing utility, as well as additional considerations related to the Contract, is
included in Confidential Appendices B, C, and D.

Pursuant to Section 5c(c) of the Act and CFTC Regulations 40.2(a), the Exchange hereby
certifies that the listing of the Contract complies with the Act and Commission
regulations under the Act.

General Contract Terms and Conditions: The Contract operates similar to other event
contracts that the Exchange lists for trading. The minimum price fluctuation is $0.01 (one
cent). Price bands will apply so that Contracts may only be listed at values of at least
$0.01 and at most $0.99. Further, the Contract is sized with a one-dollar notional value
and has a minimum price fluctuation of $0.01 to enable Members to match the size of the
contracts purchased to their economic risks. The Exchange has further imposed position
limits (defined as maximum loss exposure) of $25,000 USD on the Contract. As outlined

KalshiEX LLC