> For the complete documentation index, see [llms.txt](https://doc.notliquid.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.notliquid.fun/inside-the-pool/backing-and-odds.md).

# Backing & Odds

A listing enters PNL as a pair: one eligible ERC-721 and one dedicated amount of HYPE.

The NFT and backing enter the protocol together. They stay accounted to that position until it is withdrawn, allocated, or settled.

## What backing does

Backing has three jobs:

1. It funds the depositor's standing bid to receive the NFT back.
2. It sets the position's selection weight.
3. It provides the capital returned or paid out when the position settles.

Backing is not pooled across listings, lent out, or used to settle somebody else's NFT. One position cannot borrow another position's wallet.

{% hint style="warning" %}
Backing is a funded bid, not an appraisal. It does not claim that the NFT is worth that amount on any marketplace.
{% endhint %}

## Inverse weighting

PNL calculates weight as:

```
weight = 1e36 / backingWei
```

Selection probability is:

```
position weight / total pool weight
```

That makes the relationship inverse:

* less backing means more weight and higher selection odds;
* more backing means less weight and lower selection odds.

If two positions have 1 HYPE and 4 HYPE of backing, their relative weights are 1 and 0.25. Their selection odds are therefore about 80% and 20%.

The 4 HYPE position is rarer, not invisible. Randomness remains perfectly capable of ruining a confident prediction.

## Active and staged positions

An active position participates in pricing, selection, ordinary fee sharing, and the [Top Listing](/money-and-risk/earnings-and-top-position.md#top-listing).

A listing created while an acquisition is unresolved enters a first-in-first-out staging queue. A staged listing:

* is already escrowed;
* is not yet selectable;
* does not change an earlier request's pool;
* does not earn active-listing fees before activation.

PNL commits staged batches to acquisition sequences before requesting randomness. Callback timing cannot decide which new listings enter first.

## Change the backing

The depositor can raise or lower an active position's backing. PNL recalculates its inverse weight immediately after the update.

Repricing is locked while acquisitions remain unresolved because changing one weight would change the pool beneath an existing request.

Raising the backing can take the Top Listing position if it clears the takeover threshold. Lowering the backing while holding Top Listing gives up the spot and settles the accumulated pot.

## Withdraw a position

The depositor can withdraw an active, unallocated position when no acquisition remains unresolved.

Withdrawal:

* removes the position from the selectable pool;
* returns its NFT;
* returns its HYPE backing;
* credits its pending ordinary fees;
* settles its Top Listing pot if it held the spot.

Staged listings must first reach active status. They cannot be pulled out of the middle of the queue just because waiting became unfashionable.


---

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