Incurred Losses

The Incurred Loss of a losing betting pool is limited to the winning smols’ betting pool size.

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Incurred Loss formula:

IL = min(W, L)

When a losing pool has lost only part of what it has wagered, loss is applied as a percentage, the same as with winning:

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Example:

Let’s assume betting pool P₁ has bet 12.24ETH and it has incurred a loss of only 8.32ETH.

Pool P₁ has the following participating users:

U₁: 0.45ETH,    U₂: 0.89ETH,    U₃: 3.22ETH,    U₄: 6.00ETH,    U₅: 1.68ETH

Incurred Loss (IL) = 8.32ETH

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Result:

U₁ is left with 0.144ETH,    U₂ is left with 0.285ETH and    U₃ is left with 1.03ETH.

U₄ is left with 1.92ETH,    U₅ is left with 0.537ETH.