Liability in matched betting is the amount of money you need in your betting exchange account to cover your lay bet.

For example, if your lay stake is £10 and your liability is £20, you will need at least £20 in your exchange account to fully match your bet successfully. 

When you place your lay bet on the betting exchange, your available balance will go down by the liability amount. The exchange will then hold this liability until the result of the bet is known. 

For example, if you had £100 in your exchange account and placed the lay bet above, your available balance would go down to £80 because of the £20 liability being held by the exchange. To see the total amount of money you have tied up on unsettled lay bets look at the exposure figure on your account. 

After the event takes place your bet will be settled by the exchange.

- If your lay bet loses, you will lose your liability on the exchange and win your back bet with the bookmaker. The winning from the back bet will cover the lost liability if your bets were placed correctly. 

- If your lay bet wins, your liability will be returned to you in full and you will also receive the lay stake you laid minus any commission. 

Don’t forget, Premium and All Access members can activate 0% commission on your Smarkets account by following the guide here.