What is Liability in Matched Betting?

Liability is the amount you stand to lose on a lay bet if the outcome you laid actually happens. When you lay on an exchange, you are taking the other side of a bet, so you have to be able to pay out if it wins.

How liability is worked out

Liability = (lay odds minus 1) times your lay stake.

For example, if you lay $10 at odds of 5.0, your liability is (5.0 minus 1) times 10, which is $40. You need that $40 available in your exchange account to place the lay.

Why it matters

The higher the odds you lay at, the bigger the liability, so the more money you need sitting in your exchange account. This is why we usually pick moderate odds rather than very high ones. The calculator always shows your liability, so you know exactly how much you need before you place anything.

Next steps

Read about liquidity, which decides whether your lay can be matched at all, or the complete guide to matched betting.