Prediction Odds Mechanisms
Odds are a return multiplier. The pricing mechanism depends on the game; the currently displayed quote is not evidence of an already accepted order’s terms.
Three mechanisms
Up/Down pool pricing
The configuration describes the Up quote as one plus the target-return factor multiplied by the Down pool, divided by the Up pool plus the proposed stake. For Down, exchange the two pools. Configured lower and upper bounds constrain the result.
Liquidity supplied by platform market-making accounts can participate in these pools. Their orders are not counted as real user participation. A displayed participant count is therefore not a complete representation of pool funds.
Grid probability pricing
Estimated hit probability considers the mark price, recent volatility, and the chosen price/time boundaries. It estimates touching during a window, not simply ending inside a range.
For a 97% target return factor and an estimated 20% hit probability, the model quote is 4.85x. Grid configuration sets a minimum; quotes above the maximum make the cell unavailable rather than being capped down to that maximum.
Target return is not a promised result
A target return parameter is an input to pricing. It is not a guaranteed individual return, an observed win rate, or a promise that a user’s results will converge to that percentage. Model estimates, odds bounds, and actual outcomes are different quantities.
For money examples and precision, see Payouts and PnL.