> 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-v3/3.2-concentrated-probability-and-capital-efficiency.md).

# 3.2 Concentrated Probability and Capital Efficiency

One of the most powerful features of AMM V3 is Concentrated Probability. In most events, the likely outcome is eventually narrowed down to a specific price range. For example, in a high-stakes election, the probability might hover between 45% and 55% for months.

Traditional AMMs spread liquidity across the entire price range (from 0 to 100%), which is a massive waste of capital. Foresure’s Equilibrium Engine allows Liquidity Architects to concentrate their capital within specific "Probability Bands." This ensures that the market has maximum depth exactly where the trading activity is happening, drastically reducing slippage for large institutional trades and maximizing the yield for those providing the liquidity.


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