> For the complete documentation index, see [llms.txt](https://docs.libertyswap.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.libertyswap.finance/liberty-hypermarket/how-it-works.md).

# How It Works

Liberty Hypermarket markets are structured as outcome shares. Each market asks a yes/no question about a future event (for example, "Will Argentina win the World Cup?"). Shares for an outcome trade between $0 and $1, and the share price reflects the market's implied probability for that outcome.

•       If the outcome occurs, each share pays out $1.

•       If the outcome does not occur, each share is worth $0.

This share-based structure allows Hypermarket to be used two ways:

Speculation. A trader who believes an outcome is under-priced can buy shares below their expected value and profit if the event resolves in their favor.

Hedging. A user with a real-world financial exposure to an event's outcome can buy shares to offset that exposure. For example, a business owner planning a promotion tied to a sports result can buy shares corresponding to that outcome; if the event happens and the promotion becomes costly, the share payout offsets the cost, and if it doesn't happen, the cost of the shares functions similarly to an insurance premium.

Pricing, matching, and settlement of markets are handled by Hyperliquid's HyperCore infrastructure under the HIP-4 event-contract framework.