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Parlays

A parlay is a single bet that links multiple individual wagers together. All selections must win for the parlay to pay out, but the combined odds create the potential for larger returns from a smaller stake.

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How Parlays Work

When you place a parlay on SportToken:
  1. Select multiple outcomes - Add 2 or more selections to your bet slip
  2. Combined odds - The odds multiply together for higher potential returns
  3. All-or-nothing - Every leg must win for the parlay to pay out

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Parlay Fees

SportToken uses a compounding fee structure for parlays:

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System Fee

  • 0.3% base platform fee on all parlays
  • 1.0% for CBB (college basketball) DraftKings-only games

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Market Fee (Per Leg)

Each leg of your parlay incurs a market-based fee that compounds:
  • Fee is based on market imbalance (how lopsided the betting is)
  • Minimum 0.75% per leg (ensures at least 1.5% retained)
  • Fees multiply together: a 2-leg parlay with 2% per leg ≈ 3.96% total

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Example Fee Calculation

3-Leg Parlay with $100 stake:
  • System fee: 0.3% = $0.30
  • Leg 1 market fee: 1.5%
  • Leg 2 market fee: 2.0%
  • Leg 3 market fee: 1.8%
  • Combined market fee: 1 - (0.985 × 0.98 × 0.982) ≈ 5.2%
  • Total fee: ~5.5%
  • Net stake: ~$94.50
Unlike single bets which cap at 3% total fee, parlay fees are uncapped and can exceed 3% due to compounding.

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Why Compounding Fees?

Parlays represent higher risk to the liquidity pool because:
  1. Correlated risk - Multiple outcomes are linked
  2. Higher variance - Larger potential payouts
  3. Concentrated exposure - One bettor can create significant liability
The compounding fee structure ensures the vault is adequately compensated for this increased risk while still offering competitive odds.

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Parlay Limits

  • Minimum legs: 2
  • Maximum legs: 10 (depending on sport)
  • Maximum payout: Determined by vault liquidity and exposure limits

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Instant Settlement

All parlays are backed by the SportToken liquidity vault, meaning:
  • ✅ Instant bet confirmation
  • ✅ No waiting for matching
  • ✅ Guaranteed payout for winners