GambleFi Action

# Incurred Losses

Incurred Loss is what the backers of a non-winning smol actually lose.

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

### 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:

## Example:

Let’s assume betting pool **P _{1}** has bet

**12.24ETH**and it has incurred a loss of only

**8.32ETH**.

Pool **P _{1}** has the following participating users:

**U _{1}: 0.45ETH, U_{2}: 0.89ETH, U_{3}: 3.22ETH, U_{4}: 6.00ETH, U_{5}: 1.68ETH**

Incurred Loss (**IL**) = **8.32ETH**

### Result:

**U _{1}** is left with

**0.144ETH**,

**U**is left with

_{2}**0.285ETH**and

**U**is left with

_{3}**1.03ETH**.

**U _{4}** is left with

**1.92ETH**,

**U**is left with

_{5}**0.537ETH**.