> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sx.bet/llms.txt
> Use this file to discover all available pages before exploring further.

# The Exchange Model

> How SX Bet works as a peer-to-peer prediction market exchange.

## Overview

SX Bet is modelled after a financial exchange, not a traditional sportsbook. The key difference: **there is no single counterparty or "house" taking the other side of your bet**. Every bet is matched peer-to-peer between two users.

## Makers and Takers

Every matched bet involves two roles:

<CardGroup cols={2}>
  <Card title="Maker" icon="plus">
    Posts an order to the orderbook. Specifies an outcome, stake, and desired odds. The order sits open until a taker fills it.
  </Card>

  <Card title="Taker" icon="check">
    Fills an existing maker order from the book.
  </Card>
</CardGroup>

The same user can be a maker on some trades and a taker on others — when you post an order, you're the maker; when you fill an order, you're the taker.

## Order lifecycle

```
Maker posts order
       │
       ▼
Order sits in orderbook (visible to all)
       │
       ▼
Taker fills order (fully or partially)
       │
       ▼
Funds locked in Escrow contract
       │
       ▼
Game plays out
       │
       ▼
Reporter submits result on-chain
       │
       ▼
Escrow pays winner automatically
```

## Partial fills

Orders don't have to be filled in full. A taker can fill any portion of a maker's available stake. This means:

* Large maker orders can be filled by multiple takers over time
* Takers can bet exactly how much they want, regardless of the order size

## Fees

SX Bet charges **0% trading fees** on straight bets. There is a **5% fee** on parlay bets.

## Next

<Card title="The Orderbook →" icon="arrow-right" href="/developers/orderbook-core" />