> ## Documentation Index > Fetch the complete documentation index at: https://docs.kalshi.com/llms.txt > Use this file to discover all available pages before exploring further. # Settlement Bounds > Settlement bounds trading and payout mechanics Settlement floors are not live yet. The launch timeline is TBA. Certain markets have a scalar payout and can be partly determined before the event ends. The settlement floor is the minimum payout per contract to YES holders. ## Example A government shutdown market settles at \$0.10 for each day the shutdown lasts, up to 10 days. After 3 days, Kalshi may raise the settlement floor to the guaranteed payout of \$0.30. ## Fields Markets include `settlement_bounds_type`, which is `default` or `floor`. `default` means Kalshi will never apply a settlement floor to the market. Markets in events with a `collateral_return_type` of `MECNET` or `DIRECNET` are always `default`. Markets of type `floor` also include `settlement_floor_dollars`. It starts at \$0 when the market is created. ## How It Works * Kalshi raises the floor when part of the outcome becomes certain. * YES holders' available balance goes up by the floor increase times their contracts. * The floor does not affect a NO holder's available balance. * Buying YES releases collateral equal to the floor. Available balance goes down by the price minus the floor. * Selling held YES contracts raises available balance by the price minus the floor. * Orders must have a YES price above the floor. A NO price must be below \$1 minus the floor. * After a raise, resting orders with a YES price at or below the new floor are canceled. For NO orders, that is a NO price at or above \$1 minus the new floor. * At settlement, YES holders receive the value the market settles at minus the floor, per contract. NO holders receive \$1 minus the value the market settles at. * This applies only to members who trade directly with Kalshi. For FCM members, the floor never changes available balance. At settlement, they receive the full value per YES contract. ## Lowering the Floor In rare cases, Kalshi may lower the settlement floor due to a settlement source correction. * YES holders' available balance goes down by the floor decrease times their contracts. * NO holders' available balance does not change. * Resting orders a [subaccount](/getting_started/subaccounts) can no longer pay for are canceled. This can include orders in other markets. If a subaccount's available balance goes negative, Kalshi first covers it from the member's other subaccounts. Any amount left stays as a negative balance on the primary subaccount. A subaccount with a negative balance cannot place any orders, including orders that close a position. It can trade again once its balance is back to zero. ## Worked Example This uses the shutdown market. Fees are left out. 1. The floor is \$0. Member A buys 100 YES at \$0.40. A's available balance goes down by \$40. Member B buys the other side: 100 NO at \$0.60. B's available balance goes down by \$60. 2. After day 3, Kalshi raises the floor to \$0.30. A's available balance goes up by \$30. B's does not change. 3. A sells 50 YES at \$0.45 to member C. A's available balance goes up by \$0.45 minus the \$0.30 floor, times 50: \$7.50. C's goes down by the same \$7.50. 4. The shutdown ends after 5 days. The market settles at \$0.50. 5. A and C each hold 50 YES. Each gets \$0.50 minus the \$0.30 floor: \$0.20 per contract, so \$10. 6. B gets \$1 minus \$0.50: \$0.50 per contract, so \$50. In total: * A paid \$40 and got back \$47.50: \$30 at the raise, \$7.50 from the sale and \$10 at settlement. * C paid \$7.50 and got back \$10. * B paid \$60 and got back \$50. This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.