> ## Documentation Index
> Fetch the complete documentation index at: https://docs.horse.fun/llms.txt
> Use this file to discover all available pages before exploring further.
# How It Works
> Complete race cycle from entry to payout
## Race Cycle Overview
Every race follows a predictable 2.5-minute cycle:
| Phase | Duration | Actions |
| --------- | ----------- | ----------------------------------------------------------- |
| **Entry** | 120 seconds | Players submit entries on horses |
| **Race** | 30 seconds | Outcome fixed by VRF, race animation shown, payouts settled |
This creates **576 races per day**, running continuously 24/7.
***
## Step-by-Step Process
**What happens:**
* Players analyze horse probabilities for current track
* Place entries on horses they think will win
* Pool accumulates for each horse
* Live pool distribution visible to all players
**Smart strategy:** Watch pool distribution to find value entries where probability exceeds pool share.
**What happens:**
* No more entries accepted
* All entry pools are locked
* Protocol requests randomness from Switchboard VRF
* Prize pools are calculated from total volume
**Prize Pool Allocation:**
```
Total entries: 10,000 SOL
1st place pool (60%): 6,000 SOL
2nd place pool (20%): 2,000 SOL
3rd place pool (10%): 1,000 SOL
Blazing Hoof (2%): 200 SOL
King's Run (2%): 200 SOL
Buyback-and-burn (1%): 100 SOL
Protocol fee (5%): 500 SOL
```
Switchboard oracle network generates verifiable randomness:
* Multiple oracle nodes create random values
* Cryptographic proofs ensure validity
* 256-bit random seed posted on-chain
The seed determines everything: winners, jackpots, next track.
The outcome is fixed by the VRF seed the moment entries close; the race is then shown as an animation of that predetermined result while payouts settle.
**Winner Selection (Plackett-Luce):**
* Horses are drawn one position at a time, each with probability proportional to its remaining weight
* This yields the full finishing order (1st, 2nd, 3rd, …)
* Each horse wins with exactly its assigned probability, deterministically verifiable on-chain
**Jackpot Checks:**
* Blazing Hoof: 1/125 chance
* King's Run: 1/12500 chance
* A trigger pays out only if the race passes the volume gate (minimum-volume threshold); otherwise it is void and the pot keeps growing
Winners can claim their share:
**Payout Formula:**
```
Your payout = (Your entry / Total entries on horse) * Prize pool
```
**Example:**
* You enter 100 SOL on Horse #5
* Total entries on Horse #5: 1,000 SOL
* Horse #5 wins 1st place
* Your payout: (100/1,000) \* 6,000 = 600 SOL
Payouts are available to claim after race resolution.
All players receive HORSE tokens (volume-linked emission):
```
Race emission E = min(c * total volume, cap) // bootstrap: c = 0.5, cap = 25
Your tokens = E * (Your entry / Total race volume)
```
Below the cap this is simply `c × your entry`. When staked, these tokens increase your share of future jackpots.
The VRF seed also determines:
* Next track (Doubloon Downs, Stampede Canyon, Synthwave Strip, or Crown Meadows)
* Probability permutation for horses
New entry phase begins immediately.
***
## Key Mechanics
### Pari-Mutuel System
All entries pool together, winners share proportionally:
* No fixed payout ratios - payouts depend on pool distribution
* Popular horses = lower returns per SOL
* Unpopular horses = higher returns per SOL
### Progressive Jackpots
Every race contributes to two jackpot pools:
**Blazing Hoof (Normal Jackpot):**
* 2% of volume per race
* Triggers \~4.6 times daily (\~every 5.2 hours)
* Size depends on accumulated volume
**King's Run (Super Jackpot):**
* 2% of volume per race
* Triggers \~every 21.7 days
* Size depends on accumulated volume
Only players who backed the **winning horse** are eligible.
### HORSE Token Economy
* **Emission**: volume-linked (`c × volume`, capped per race) to all players
* **Utility**: jackpot share scales with entry × (1 + λ·staked tokens)
* **Burning**: winners burn 10% (normal) or 50% (super) of their staked tokens
* **Buyback**: 1% of volume buys HORSE from the pool and burns it
***
## Economic Flow
Where your entry goes:
```
100 SOL Entry
│
├─> 60 SOL: 1st Place Winners
├─> 20 SOL: 2nd Place Winners
├─> 10 SOL: 3rd Place Winners
├─> 2 SOL: Blazing Hoof
├─> 2 SOL: King's Run
├─> 1 SOL: HORSE Buyback-and-Burn
└─> 5 SOL: Protocol Fee
```
**Return to players:** 95% (90% prizes + 4% jackpots + 1% buyback value)
**Protocol sustainability:** 5%
***
## Verification
Everything is verifiable on-chain:
Verify the random seed and its cryptographic proof
Recalculate winner selection using the seed
Check that payouts match the pari-mutuel formula
All data is permanently stored on Solana for transparency.
***
## Why This Design?
576 races daily means constant availability and liquidity
VRF ensures trustless, verifiable randomness
The pari-mutuel pool is self-funding — the protocol never takes a position
5% fee funds development without token inflation
***
## Next Steps
Understand the four track probability profiles
Learn optimal entry strategies
How progressive jackpots work
Start playing in minutes