> ## 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.

# How Does SX Bet Work?

> Understand the peer-to-peer exchange model on SX Bet

## A Betting Exchange, Not a Sportsbook

This peer-to-peer model means better odds, because you're not paying a bookmaker's fixed margin. Dynamic, competitive pricing sets the odds on SX.

## Makers and Takers

Every bet on SX Bet involves two roles:

<CardGroup cols={2}>
  <Card title="Maker" icon="plus">
    Posts a limit order to the order book – this order sits open until it is cancelled or filled.
  </Card>

  <Card title="Taker" icon="check">
    Fills a maker's existing limit order from the orderbook with a market bet. This is like placing a bet on a traditional sportsbook.
  </Card>
</CardGroup>

You don't need to choose one role — when you place a [**market order**](/user-guides/trading/market-orders) (betting at the best available odds), you're a taker. When you place a [**limit order**](/user-guides/trading/limit-orders) (requesting specific odds), you're a maker.

## Your Wallet, Your Funds

SX Bet is **non-custodial** — your funds stay in your personal wallet, not in an account controlled by SX Bet. This is fundamentally different from traditional sportsbooks where you deposit money into a company's account.

<Steps>
  <Step title="Funds sit in your wallet">
    Your USDC sits in your personal wallet at all times until you place a bet.
  </Step>

  <Step title="You place a bet">
    When you bet, you authorize the transfer by signing the transaction. Nothing moves without your approval.
  </Step>

  <Step title="Funds move to escrow">
    Your stake and the other bettor's stake are held in a secure escrow smart contract. Neither party can touch the funds — the contract holds them until the game ends.
  </Step>

  <Step title="Winnings paid automatically">
    When the event concludes, the escrow contract automatically pays out the winnings directly to the winner's wallet.
  </Step>
</Steps>

## Betting Currency: USDC

All bets on SX Bet are placed using **USDC**, a stablecoin pegged 1:1 to the US dollar. 1 USDC = \$1 USD, always.

## Fees

| Bet Type    | Fee                        |
| ----------- | -------------------------- |
| Single bets | **0%**                     |
| Parlays     | **5%** (winning bets only) |

SX Bet also covers all gas (transaction) fees for betting, so there are no hidden costs.

Learn more about [fees on SX Bet](/user-guides/trading/fees).

## Next Steps

<CardGroup cols={2}>
  <Card title="Quickstart" icon="rocket" href="/user-guides/getting-started/quickstart">
    Sign up, fund your wallet, and place your first bet.
  </Card>

  <Card title="Reading the Order Book" icon="book" href="/user-guides/trading/order-book">
    Learn how to find odds and navigate the live order book.
  </Card>
</CardGroup>