Because Phobos' orbit is below synchronous altitude, the tidal forces from the planet Mars are gradually lowering its orbit. In about 50 million years it will either crash into Mars’ surface or break up into a ring structure around the planet.
It is not well understood how or when Mars came to capture its two moons. Both have circular orbits, very near the equator, which is very unusual in itself for captured objects. Phobos's unstable orbit would seem to point towards a relatively recent capture. There is no known mechanism for an airless Mars to capture a lone asteroid, so it is likely that a third body was involved—however, asteroids as large as Phobos and Deimos are rare, and binaries rarer still, outside the asteroid belt.
The current understanding of planetary habitability—the ability of a world to develop and sustain life—favors planets that have liquid water on their surface. This most often requires that the orbit of a planet lie within the habitable zone, which for the Sun currently extends from just beyond Venus to about the semi-major axis of Mars. During perihelion Mars dips inside this region, but the planet's thin (low-pressure) atmosphere prevents liquid water from existing over large regions for extended periods. The past flow of liquid water, however, demonstrates the planet's potential for habitability. Recent evidence has suggested that any water on the Martian surface would have been too salty and acidic to support terran life.
The lack of a magnetosphere and extremely thin atmosphere of Mars are a greater challenge: the planet has little heat transfer across its surface, poor insulation against bombardment and the solar wind, and insufficient atmospheric pressure to retain water in a liquid form (water instead sublimates to a gaseous state). Mars is also nearly, or perhaps totally, geologically dead; the end of volcanic activity has stopped the recycling of chemicals and minerals between the surface and interior of the planet.
Evidence suggests that the planet was once significantly more habitable than it is today, but whether living organisms ever existed there is still unclear. The Viking probes of the mid-1970s carried experiments designed to detect microorganisms in Martian soil at their respective landing sites, and had some apparently positive results, including a temporary increase of CO2 production on exposure to water and nutrients.