This worked example shows how to calculate the liability for a lay bet of $25.00 at odds of 5.00 on a betting exchange.
| Input | Value |
|---|---|
| Lay Stake | $25.00 |
| Lay Odds | 5.00 |
| Result | Amount |
|---|---|
| Liability | $100.00 |
| Profit if selection loses | +$25.00 |
| Loss if selection wins | −$100.00 |
The formula for lay bet liability is: Liability = (Odds − 1) × Stake
(5.00 − 1) × $25.00 = $100.00
When you lay a selection on a betting exchange, you act as the bookmaker — betting the selection will not win. If it loses, you collect the backer's stake as profit ($25.00). If it wins, you pay out the backer's winnings — your liability of $100.00.
The exchange reserves your liability when the bet is placed and releases it when the market settles.