> For the complete documentation index, see [llms.txt](https://docs.0y.world/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.0y.world/markets/how-are-odds-calculated.md).

# How Are Odds Calculated

On 0Y Markets, the odds you see are 0Y’s live quote for each side (YES/NO or Higher/Lower). 0Y’s prediction market platform uses LMSR pricing engine.

0Y updates odds in real time based on:

* the underlying market movement (e.g., BTC price and volatility)
* time remaining until expiry
* risk limits and exposure balancing (to keep markets stable and sustainable)

{% hint style="info" %}
Higher odds usually means higher potential payout, but also implies the outcome is considered less likely at that moment.
{% endhint %}

***

#### What “odds” mean on 0Y Markets

Think of odds as: “If I stake X, how much do I receive if I’m right?”

You always see:

* your stake
* your selected side
* your estimated payout if you win (before you confirm)

***

#### Example: Alice trades BTC 15-min close

Market: “BTC 15-min close: Higher or Lower?”

* Alice picks Higher
* Stakes 20 USDT
* 0Y shows a payout preview (example): “Win payout: 36 USDT”
* Alice confirm

If BTC closes Higher at expiry → she wins and is credited.


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