LMSR vs Pari-mutuel Markets
Suri uses two different market mechanisms. Here's what you need to know.
LMSR Markets (Logarithmic Market Scoring Rule)
Most markets on Suri use LMSR.
How it works:
- An automated formula sets the price based on total buying/selling activity
- You can always buy or sell — the system provides liquidity
- The price you see is approximately the price you get
- You can sell your shares before the market resolves
Think of it like: a vending machine that adjusts prices based on demand.
Advantages:
- Instant execution
- Always liquid (you can always trade)
- Predictable pricing
- Can exit your position anytime
Pari-mutuel Markets
Used for some sports and event markets.
How it works:
- All bets go into a shared pool
- When the market resolves, the winning side splits the pool proportionally
- You don't know your exact payout until the market closes
- You cannot sell your position before resolution
Think of it like: a group bet where winners split the pot.
Advantages:
- Simple to understand (you're in or you're out)
- Payouts can be larger if fewer people are on your side
Disadvantages:
- You're locked in — no selling early
- Your payout depends on what everyone else does after you bet
- The "cost" shown may be ₱0, which is misleading — your cost is what you put in
How to tell which type a market is
The market type is displayed on the market page. Look for the label:
- LMSR — standard market
- Pari-mutuel — pool-based market
Which is better?
Neither is objectively better. LMSR gives you more control (you can sell anytime). Pari-mutuel is simpler but locks you in.
Our recommendation: Start with LMSR markets until you're comfortable with how trading works.