Parimutuel
How shared pools, positions, and payouts work.
How shared pools work
StockGP is built on parimutuel pools. Players put coins into shared pools, the pool's outcome determines the prize, and each player receives a cut in proportion to their share of the pool.
You are not playing against a house at fixed odds. Your result depends on how the pool is shared. In Fantasy, for example, driver performance determines how much is allocated to each driver pool, and that allocation is shared among its investors.
A few useful terms
- Pool: coins staked together on an outcome.
- Position: your stake in a pool.
- Payout: the coins returned to you from a pool.
- Multiplier: your payout divided by your stake.
Finding value
Popular choices have more people sharing their allocation, which can dilute each investor's return. An under-owned outcome can pay more relative to its stake. The goal is to find value, not just choose the most likely winner.
Predict pools work on the same shared-pool idea, with one difference: a small portion is retained as a house take before the remaining pool is shared among winning backers.