> For the complete documentation index, see [llms.txt](https://crypta.gitbook.io/crypta/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://crypta.gitbook.io/crypta/probability-exchange/editor.md).

# Exchange Overview

Crypta's hybrid probability exchange (**PEX**) is a newly designed, provably fair exchange that brings the gambling and trading worlds together.&#x20;

A PEX functions the same as an exchange, however instead of trading assets where prices move based on buy and sell orders, the platform allows users to trade synthetic markets whose prices evolve from random cryptographic hashes.&#x20;

Traders can then long or short the highly-volatile synthetic assets to capture profits.

Its like a perpetual futures exchange or CFD exchange, except the counter party to every trade is an open liquidity pool. This liquidity pool acts like the house bankroll and receives 50% of all transaction and funding fees generated from the platform.&#x20;

As the synthetic assets have an expected value of 0 (zero-house edge) the small transaction fees on each trade provide a small mathematical edge to the liquidity pool.&#x20;