Even though chiral nematic phases were the first liquid crystals experimentally observed more than a century ago, the origin of the thermodynamic stability of cholesteric states is still unclear. In this Letter we address the problem by means of a novel density functional theory for the equilibrium pitch of chiral particles. When applied to right-handed hard helices, our theory predicts an entropydriven cholesteric phase, which can be either right-or left-handed, depending not only on the particle shape but also on the thermodynamic state. We explain the origin of the chiral ordering as an interplay between local nematic alignment and excluded-volume differences between left-and right-handed particle pairs.PACS numbers: 64.70.mf, 64.70.pv, 61.30.Cz, 61.30.St Cholesteric phases, also known as chiral nematics, are fascinating examples of liquid crystals. Liquid crystals are phases of matter characterized by a degree of spontaneous breaking of the rotational and translational symmetries that is higher than in the liquid and lower than in the crystal phase. In the nematic phase, for example, the particles self-organize by all aligning along a common direction (the nematic director), while keeping their centers of mass homogeneously distributed in space. Chiral nematic liquid crystals are peculiar as their nematic director rotates like a helix around a chiral director, thus giving rise to a chiral distribution of the orientations of the particles [1]. A cholesteric phase can be either righthanded (as in Fig. 1(a)) or left-handed, depending on the handedness of the helix drawn by the nematic directorn. The wavelength associated to a full rotation of the nematic director around the chiral directorÏ is known as the cholesteric pitch P . Cholesteric phases are commonly found in both thermotropic molecular compounds (e.g., derivatives of cholesterol [2][3][4][5]) and in lyotropic colloidal suspensions of, e.g., DNA [6,7] and filamentous viruses [8][9][10][11][12]. Their widespread occurrence explains why cholesterics were the first liquid-crystal phase experimentally observed [2]. The pitch is experimentally known to take values several orders of magnitude higher than the size of the constituent particles, reaching the visible-light wavelength in molecular compounds. For this reason, and for their liquid-like rheological properties, cholesterics have long found wide technological application in the opto-electronic industry [13].Despite their long history and widespread technological applications, surprisingly little is understood about this chiral state of matter. A fundamental open question regards the relationship between macroscopic and microscopic chirality, i.e., between the handedness of the phase and that of the constituent particles [14][15][16][17]. Moreover, it is still to be unambiguously proved that hard chiral interactions alone can give rise to an entropy-stabilized chiral-nematic phase [17,18]. The problem in interpreting experimental data is largely due to the limitations of theory and simulation method...