Probabilities & Market Engine

How probabilities work across chains and market mechanics

Last updated: October 20, 2018

How ScorePlay calculates and displays probabilities across multiple blockchain networks.

Note: This document primarily applies to USDC participation (where permitted). Free voting uses a simple voting system with probabilities displayed for informational purposes.

Market Types (USDC Participation Only)

If you choose to participate with USDC (where permitted), ScorePlay supports two market types:

V1 Markets (Simple Outcomes)

Pool-based markets for:

  • Match winner (Team A, Draw, Team B)
  • Simple binary outcomes

How it works:

  • All votes go into a shared pool
  • Probabilities calculated from total amounts per outcome
  • Payouts distributed proportionally to winners

V2 Markets (Multi-Option)

LMSR (Logarithmic Market Scoring Rule) based markets for:

  • Exact score predictions
  • Complex multi-outcome markets

How it works:

  • Uses automated market maker (AMM) mechanics
  • Probabilities adjust dynamically based on liquidity
  • More efficient for markets with many outcomes

Best Probabilities Selection

When an event is available on multiple chains (USDC participation only), ScorePlay:

  1. Fetches probabilities from all chains where the event exists
  2. Compares payout multipliers for each outcome
  3. Displays the highest probabilities available
  4. Allows chain switching if user prefers a different chain

Why Probabilities Vary

Probabilities can differ between chains due to:

  • Different liquidity - More votes on one chain = different probabilities
  • Market version - V1 vs V2 markets calculate differently
  • Timing - Probabilities update as votes are placed
  • Chain-specific factors - Network fees, user preferences

Probability Calculation

V1 Markets

Probability = Amount on Outcome / Total Pool

Example:

  • $100 on Team A
  • $50 on Draw
  • $50 on Team B
  • Total Pool = $200

Team A probability = $100 / $200 = 50%

V2 Markets

V2 uses LMSR formula that considers:

  • Current liquidity in the market
  • Your position size
  • Impact of your vote on probabilities

Probabilities are calculated dynamically and shown in the position preview before you confirm.

Probability Display

Users can view probabilities as:

  • Percentages (default): Shows percentage chance (e.g., 45%, 30%, 25%)
  • Multipliers: Shows payout multiplier (e.g., 2.22x, 3.33x, 4.00x)

Both represent the same information, just in different formats.

Market Availability

Not all events are available on all chains. Factors include:

  • Event creation time
  • Chain support for market type
  • Liquidity requirements

The app automatically shows only chains where the event is available.

Note: Free voting displays probabilities for informational purposes but does not require market availability on specific chains.

Real-Time Updates

Probabilities update in real-time as:

  • New votes are placed
  • Positions are closed
  • Market liquidity changes

Always check current probabilities before placing a vote, as they may have changed.

Best Practices

  1. Compare chains - Check if better probabilities exist on another chain (USDC participation only)
  2. Check market version - V2 markets may have different mechanics (USDC participation only)
  3. Consider liquidity - Higher liquidity = more stable probabilities (USDC participation only)
  4. Watch for updates - Probabilities change as votes are placed

Free Voting

For free voting, probabilities are displayed for informational purposes:

  • Based on historical data and AI analysis
  • Help inform your voting decisions
  • Do not require blockchain networks or market liquidity
  • Used to help you make more accurate predictions

For technical details, see Networks & Contracts.

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