This startup wants to reduce liquidation risk from margin calls on prediction markets

Startup Edge Markets is building an automated system that allows institutions to authorize capital for prediction markets and helps companies move money to cover margin calls even when traditional banking systems are closed.

"Markets are becoming increasingly automated and global, but the infrastructure for accessing and moving capital on prediction markets falls short of real-world demand," said Seni Thomas, founder and CEO of Edge Markets. The company is a provider of financial infrastructure focused on the gaming and prediction markets industries.

Edge Markets' new infrastructure, available through its Edge Pro service for market makers, aims to support institutional trading for markets that operate around the clock. It allows institutions to decide in advance how much capital to deploy, including setting limits on daily transactions executed by artificial intelligence agents and trading algorithms.

The latest product comes as prediction market products face a roadblock: Perpetual futures — derivative contracts that never expire — trade nonstop, while traditional banking systems do not. Perpetuals were first launched by Kalshi in May 2026

If a margin call happens outside of working hours, Edge's payment infrastructure, called Edge Connect, would allow institutional traders to pre-authorize a clearing house to automatically pull additional collateral.

A margin call alerts a trader to add more funds if the trader's account drops below the required margin benchmark.

"Clearing houses should not have to tie up hundreds of millions of dollars simply because a margin call happens outside banking hours," Thomas said. "By allowing firms to establish permissions in advance, we can help reduce avoidable liquidations, improve capital efficiency and make always-on markets more resilient."

The tool, which is expected to launch later this year, would help institutions route capital and transactions from trades to banks.

Edge Markets is partnering with companies such as River Markets, ParlayX, OpenMarkets and Pikkit, whose clients will have access to the new product.

Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.