> For the complete documentation index, see [llms.txt](https://docs.strixlab.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.strixlab.io/getting-started/what-is-strix.md).

# What is Strix Lab?

A plain-English introduction to prediction markets and how Strix Lab works.

Strix Lab is a **prediction market** — a marketplace where you buy and sell shares in the outcome of a future real-world event. The price of a share is the market's live estimate of how likely that outcome is.

You already form views on these outcomes every day: will it rain this weekend, will rates get cut, will your team win the final. A prediction market gives those views a price — and lets you back them with a position.

### Shares, prices, and probability

Every market is built around one question with a **Yes** side and a **No** side. Each side is a share that:

* costs between **1¢ and 99¢** to buy, and
* **settles at exactly $1** if it turns out correct — or **$0** if not.

Because of this, **a price is a probability**. If Yes shares on "Will it rain tomorrow?" trade at 65¢, the market collectively thinks there's roughly a 65% chance of rain. As people buy and sell, the price moves — so the market is a live forecast that updates as collective belief shifts.

**Example.** You buy 100 Yes shares at 65¢, paying $65. If it rains, the market settles and each share is worth $1 — you receive $100, a $35 profit. If it doesn't rain, the shares settle at $0.

(You may also see the word *resolve* used elsewhere for the same thing — on Strix Lab we say a market **settles** when the real-world outcome is confirmed.)

### You don't have to wait for settlement

Prices move as news breaks and other traders buy and sell. You can **sell your shares at any time before the market settles** — to lock in a profit or cut a loss, just like selling a stock or anything else you own.

If those Yes shares climb from 65¢ to 80¢ after a strong weather forecast, you can sell at 80¢ and take the gain without waiting for the rain itself. You control when you exit.

### How Strix Lab is different

<table data-view="cards"><thead><tr><th></th><th></th></tr></thead><tbody><tr><td><strong>A real order book</strong></td><td>When you place an order on Strix Lab, it matches directly against other users' orders on a live order book — the same system professional exchanges use. A live order book means you always trade at a true market price.</td></tr><tr><td><strong>Low, transparent fees</strong></td><td>If your order waits in the book for someone to match it, you pay <strong>nothing</strong>. If you match an existing order for instant execution, you pay a small fee — among the lowest of any prediction market. Full details in <a href="https://docs.strixlab.io/trading/fees">Fees</a>.</td></tr><tr><td><strong>Your funds stay yours</strong></td><td>Your money sits in your own built-in wallet — Strix Lab never takes custody of it. Every trade settles transparently on the blockchain in <strong>USDC</strong>, a digital dollar designed to stay at $1.</td></tr></tbody></table>

### What you can trade

Markets span **Sports, Crypto, Finance, Politics, Economics, Culture, Weather, Tech, Geopolitics**, and more.

Most markets are a single Yes/No question: *"Will the Fed cut rates at the next meeting?"*

Some events group several outcomes together — *"Who will win the tournament?"* is really a set of Yes/No markets, one per team, collected under one event page. You take a position on the specific outcome you believe in, and each one settles independently when the result is confirmed.

You can also [create your own market](https://docs.strixlab.io/trading/create-a-market) around any outcome you think people will want to take positions on.