Operating Mechanics
How do we operate? +
Hérisson structures hedges for businesses against one-off, uninsurable risks. We do this in partnership with Kalshi, a federally regulated exchange.
What does that mean? +
Every contract we structure clears through Kalshi's exchange. Trades are settled by the exchange, not by us. We do not hold client funds. We do not take principal risk on any position. Our compensation is a structuring fee paid by the client.
Is this legal and regulated? +
Yes. Kalshi is a CFTC-regulated Designated Contract Market (DCM) operating under US federal law. The CFTC (Commodity Futures Trading Commission) is the US federal agency that regulates futures, options, and event contract markets. A DCM is the highest tier of exchange registration under US commodities law. Hérisson operates as an introducing broker in partnership with Kalshi. Our own NFA Introducing Broker registration is in progress.
Market Structure
What does it cost? +
Hérisson charges a 2% fee on the notional value of each hedge. The cost of the underlying prediction market contracts varies by event, implied probability, and coverage level. The riskier the event (i.e. the higher the market's implied probability of it occurring), the more expensive the contract. Indicative pricing is shown in the product demo on our homepage.
Who can use Hérisson? +
Hérisson is designed for US-based businesses with meaningful exposure to one-off, uninsurable events, typically companies with between $100,000 and $10M of revenue or capital at risk per event. Current target verticals include event producers, importers and supply chain operators, brand partnership managers, and live entertainment producers. If you're unsure whether your exposure qualifies, start your risk assessment at
herisson.ai/start.
What happens if there's no matching market for my specific risk? +
If no existing contract matches your exposure, Hérisson submits a new market proposal on your behalf. We aggregate demand from other clients facing similar risks and present a combined demand signal to our DCM partners. If the event meets their listing requirements (verifiable outcome, sufficient market interest, clear resolution criteria) a new contract can be created within approximately 30 days. You'll be notified throughout the process.
How is this different from traditional insurance? +
Traditional insurance requires an adjuster to verify your loss after the fact, a claims process that can take weeks or months, and coverage terms that exclude most grey-zone risks. Hérisson uses parametric contracts: the payout is triggered by an objective, verifiable event (a rainfall measurement, a court ruling date, a talent account suspension), not by a subjective assessment of your damages. If the trigger is hit, you get paid automatically within 48 hours. No receipts, no negotiation, no waiting.
When can I start? +
Hit the "Get Covered" button and we'll get in touch within 24 hours. Depending on your exposure and timing, we'll either route your hedge through our existing partner channels or structure a new contract through Kalshi. Either way, the process starts with a conversation about your risk.
About Prediction Markets
How is this different from gambling or sports betting? +
Sports wagering is designed for entertainment. The "house" takes a cut and the odds are set to guarantee profit for the operator. Prediction markets are regulated financial instruments where prices reflect the collective intelligence of all market participants, making them among the most accurate real-time probability forecasting tools available. Relatedly, the market never has any adverse incentive against participants, whereas the "house" inherently does. Academic and central-bank research has repeatedly found that prediction markets outperform traditional forecasting methods. The mechanism is similar to how farmers use commodity futures, or how airlines use fuel derivatives: a regulated financial contract that pays out when a specific, verifiable event affects your business.
How does a prediction market contract settle? +
Each contract resolves to either $1 (if the event occurs) or $0 (if it does not). If you buy YES contracts on an event and the event occurs, each contract pays out $1. If the event does not occur, the contracts expire worthless. The premium you paid was the cost of removing uncertainty.
What happens if the market doesn't have enough liquidity for my hedge size? +
For large exposures, Hérisson can arrange block trades directly with our DCM partner's market-making partners, bypassing the retail order book. This is one of the core advantages of Hérisson's introducing broker relationship. We're able to access institutional-grade liquidity that is not available to individual retail users of the platform.