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

Last Trading Date: The Last Trading Date of the Contract will be the same as the Expiration
Date. The Last Trading Time will be the same as the Expiration Time.

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 first 10:00 AM
ET following the release of the Supreme Court judgment or opinion in Murthy v. Missouri, or
December 31, 2024.

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

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.F.R. § 40.2

Based on the above analysis, the Exchange certifies that:
(4 The Contract complies with the Act and Commission regulations thereunder.
1 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.

Y/

} peLy

By: Xavier Sottile
Title: Head of Markets
Date: November 29, 2023

KalshiEX LLC


KalshiEX LLC

APPENDIX A —- CONTRACT TERMS AND CONDITIONS

Official Product Name: Will the Supreme Court rule that the government violated the First
Amendment rights of social media companies?
Rulebook: MURTHYMISSOURI

KalshiEX LLC


KalshiEX LLC

November 29, 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 the Supreme Court rule that the government violated the First Amendment
rights of social media companies?” Contract

Dear Sir or Madam,

Pursuant to Section Sc(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 the Supreme Court rule that the government violated the First Amendment
rights of social media companies?” contract (Contract). The Exchange intends to list the contract once.
The Contract’s terms and conditions (Appendix A) includes the following strike conditions:

e <date> (the latest trading 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

MURTHYMISSOURI

Scope: These rules shall apply to this contract.

Underlying: The Underlying for this Contract is Judgments of the Court and Opinions of the
Court from the Supreme Court of the United States (collectively called “rulings”) in the case of
Murthy v. Missouri (Docket Number 23-411). Dissenting and concurring opinions are not
included in the Underlying. Revisions to the Underlying made after Expiration will not be
accounted for in determining the Expiration Value.

Instructions: Slip opinions can be found here.'! Click on MURTHY, SURGEON GEN. V.
MISSOURI. 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 the Supreme Court of the United States.
Type: The type of Contract is an Event Contract.
Issuance: This contract will be issued once.

Payout Criterion: The Payout Criterion for the Contract encompasses the Expiration Values that
contain a ruling in Murthy v. Missouri that follow the following conditions:

e If the Supreme Court rules that the federal government violated the First Amendment
rights of social media companies, then that outcome is encompassed in the Payout
Criterion.

e If the Supreme Court rules that the federal government violated the First Amendment
rights of social media companies, but also sends the case back to the lower court to be
re-heard, then that outcome is encompassed in the Payout Criterion.

e Ifthe Supreme Court sends the case back to lower courts to be reheard without ruling that
the federal government violated the First Amendment rights of social media companies,
then that outcome is not encompassed in 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.

" https://www.supremecourt.gov/opinions/slipopinion/22

KalshiEX LLC


KalshiEX LLC

KalshiEX LLC

Official Product Name: Will the Supreme Court rule that the government violated the First Amendment
rights of social media companies?

Rulebook: MURTHYMISSOURI

Kalshi Contract Category: Political Decision

Murthy v. Missouri outcome

November 29, 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 the Supreme Court rule that the government violated the First Amendment
rights of social media companies?” Contract is a contract relating to the Supreme Court’s
upcoming ruling in Murthy v. Missouri. After careful analysis, Kalshi (hereafter referred
to as “Exchange”) has determined that the Contract complies with its vetting framework.

Murthy v. Missouri is a case currently pending before the U.S. Supreme Court that
addresses the issue of whether or not the government infringed on the First Amendment
rights of social media companies by asking them to moderate content in particular ways.
This has important implications for companies in the space.

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 Sce(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

KalshiEX LLC


KalshiEX LLC

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
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 the Supreme Court has ruled in Murthy v. Missouri that the federal government
violated the First Amendment rights of social media companies, 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