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What is Pari-Mutuel Pooling?

Pari-mutuel (from the French for “mutual stake”) is a pooled-prize system where all entries are pooled together, and payouts are distributed among winners proportionally to their entries.
In pari-mutuel, players compete against each other — never against the protocol. The protocol simply facilitates the pool and takes a transparent 5% fee.

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How It Works

1

Pool Formation

All entries on each horse accumulate into per-horse pools during the entry phase.
2

Prize Distribution

When entries close, the total pool is allocated:
Allocation% of Total
1st Place Winners60%
2nd Place Winners20%
3rd Place Winners10%
Blazing Hoof (Normal Jackpot)2%
King’s Run (Super Jackpot)2%
HORSE Buyback-and-Burn1%
Protocol Fee5%
3

Payout Calculation

Winners receive payouts proportional to their entry share of the winning horse’s pool.

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Payout Formula

Your Payout=Your EntryTotal Entries on Horse×Prize Pool\text{Your Payout} = \frac{\text{Your Entry}}{\text{Total Entries on Horse}} \times \text{Prize Pool} Where:
  • Your Entry = Amount you committed on the winning horse
  • Total Entries on Horse = Sum of all entries on that horse
  • Prize Pool = 60% (1st), 20% (2nd), or 10% (3rd) of total volume

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Example

Race scenario:
  • Total entry volume: 10,000 SOL
  • You enter 100 SOL on Horse #3
  • Total entries on Horse #3: 1,200 SOL
  • Horse #3 wins 1st place
Your payout: 
Prize pool for 1st: 10,000 × 0.60 = 6,000 SOL
Your share: 100 / 1,200 = 8.33%
Your payout: 6,000 × 0.0833 = 500 SOL
Net gain: 500 - 100 = 400 SOL

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Key Dynamics

The pari-mutuel system self-balances payouts:
  • Popular horses (heavy volume) → Lower payout per SOL entered
  • Unpopular horses (light volume) → Higher payout per SOL entered
Example: 
Horse A: 40% of total entries → If wins, payout ratio = 60%/40% = 1.5x
Horse B: 3% of total entries → If wins, payout ratio = 60%/3% = 20x
This creates opportunities for skilled players who can identify when horses are over- or under-backed relative to their actual winning probability.

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Strategy Tips

Value Entries

Look for horses where:
  • Win probability > Pool share
  • Example: 11% chance but only 5% of pool

Pool Timing

Wait 60-120 seconds into the entry phase to see pool distribution before submitting entries

Track Selection

Different tracks offer different opportunities:
  • Doubloon Downs: Clear favorites
  • Synthwave Strip: Chaos, anyone can win

Multiple Positions

You can enter multiple horses to win different positions (1st, 2nd, 3rd)

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Why Pari-Mutuel?

FeaturePari-Mutuel
Payout ratiosSet by the players’ own pool distribution
CounterpartyNone — the protocol never takes the other side
ManipulationSelf-balancing: heavy entries reduce their own payout
TransparencyFully verifiable on-chain
Skill FactorHigh — pool analysis rewards informed players

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Multiple Wins

You can win from multiple positions in the same race: Example:
  • Enter 50 SOL on Horse #3 → Wins 1st (60% pool)
  • Enter 30 SOL on Horse #7 → Wins 2nd (20% pool)
  • Enter 20 SOL on Horse #1 → Wins 3rd (10% pool)
You receive payouts from ALL three pools!

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Edge Cases

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No Entries on a Placing Horse

If nobody backed a horse finishing in a paid position, that prize has no eligible recipient — it is routed to the buyback allocation instead of being kept by the protocol. Before the liquidity pool exists it grows the SOL reserve that seeds it; afterwards it funds extra buy-and-burn. The protocol never captures undistributed player funds. The one exception: a jackpot that triggers when nobody backed the winning horse is simply not paid and keeps accumulating in its own pool.

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Single Player Wins

If you’re the only one who backed the winner, you get 100% of that position’s prize pool.

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Your Entry Affects the Pool

Large entries reduce your own payout ratio. This is why whales often spread entries across multiple horses.

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Next Steps

Track Types

Understand how different tracks affect pool dynamics

Placing Entries

Learn the entry interface and strategies

Jackpots

How progressive jackpots accumulate and trigger

Economic Analysis

Advanced strategies and expected value calculations