Game example with distribution of profit

Here's an example of a pari-mutuel system with five participants for event "Is Trump go to jail?" and their prediction on whether an event occurs or not.

Participant
Event Outcome
Amount (PLAYW)

Player 1

No

10,000

Player 2

No

10,000

Player 3

Yes

1,000

Player 4

Yes

100

Player 5

Yes

10

In this example, the total amount on "No" is 20,000 PLAYW, while the total amount on "Yes" is 1,110 PLAYW.

Assuming that the event occurs (the "Yes" outcome wins), we can calculate the payouts for participants 3, 4, and 5 using the pari-mutuel system.

Participant
Event Outcome
Amount (PLAYW)
Payout (PLAYW)

Player 3

Yes

1,000

18,000

Player 4

Yes

100

1,800

Player 5

Yes

10

180

To calculate the payouts, we first determine the total pool of funds for the winning outcome, which is the sum of placed amount on the losing outcome (20,000 PLAYW in this case). Then, we divide the total pool by the sum of placed amount on the winning outcome (1,110 PLAYW) to obtain the payout multiplier (20,000 / 1,110 ≈ 18). Finally, we multiply each participant's placed amount by the payout multiplier to determine their respective payouts.

For example, for participant 3, the payout is 1,000 PLAYW * 18 = 18,000 PLAYW. Similarly, the payouts for participants 4 and 5 are 1,800 PLAYW and 180 PLAYW, respectively.

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