> For the complete documentation index, see [llms.txt](https://docs.foresure.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.foresure.xyz/chapter-3-the-equilibrium-engine-amm-v3/3.1-beyond-constant-product-the-logic-of-probability-pricing.md).

# 3.1 Beyond Constant Product: The Logic of Probability Pricing

Standard Automated Market Makers (AMMs) used in decentralized exchanges like Uniswap are designed for assets that have no expiration and no binary outcome. These models are inherently flawed for prediction markets. Foresure introduces the **Equilibrium Engine (AMM V3)**, a proprietary engine optimized for "Reality-Based Assets."

The Equilibrium Engine does not treat tokens as simple commodities; it treats them as **Probabilistic Claims**. The engine uses a sophisticated scoring rule that ensures that the price of a "YES" token and a "NO" token always gravitate toward a combined total that reflects the reality of the event. This prevents the "unbalanced pool" problem common in early DeFi projects.


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