Odds and Prices Calculation#

Ever wondered how the prices of shares and odds are determined on Moonopol? It’s all based on supply and demand — just like a stock market! When a market is newly created there are no shares, no prices and no odds. The more people bet on an outcome, the more expensive it gets, and vice versa. Here’s a simple breakdown of how it works.

How Are Prices Calculated?#

On Moonopol, the price of a share reflects the probability of an outcome happening. If a share costs 0.75 USDC, that means the market believes there’s about a 75% chance that this outcome will happen. If the share costs 0.25 USDC, the market sees a 25% chance.

Prices are determined using an automated market maker (AMM) model, which adjusts based on bets placed by users. The formula ensures that prices remain fair and dynamic, moving as people trade.

How Do Odds Work?#

Odds show how much you can win if you bet correctly. The odds are simply calculated as:

• Odds = (1 / Price of Share) - 1

For example:

• If a share costs 0.75 USDC, the odds are (1 / 0.75) - 1 = 0.33 (or 1.33x your bet).
• If a share costs 0.25 USDC, the odds are (1 / 0.25) - 1 = 3 (or 4x your bet).

Lower-priced shares offer higher rewards but are considered riskier, while higher-priced shares are safer bets but offer smaller rewards.

Why Do Prices Change?#

Prices adjust based on how people bet. If many users place bets on one outcome, the price of that outcome increases, and the price of the other decreases. This keeps the market balanced and reflects real-time sentiment.

Final Thoughts#

Moonopol’s pricing system is designed to be fair, transparent, and dynamic. The more users participate, the more accurate the market predictions become! Whether you're betting on a safe outcome or taking a risk for big rewards, understanding odds and prices helps you make smarter trades. 🚀