> ## Documentation Index
> Fetch the complete documentation index at: https://docs.megapot.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Earn As A Prize Pool Backer

> [!WARNING]
>
> **The LP pool remains open because the protocol continues to run.** You are encouraged to withdraw your LP from megapot.io before the app shuts down on December 1, 2026. [Read Announcement](https://megapot.io/blog/thank-you-for-playing).

**Anyone can back the prize pool and earn yield on dollars, in dollars, by taking on variance!**

Think of it like being the house, you fund the prizes and receive mathematical edge from every ticket sold. Over time, the math favors you, and the more tickets sold, the more you're likely to earn.

***

## How Backing the Prize Pool Works

First a quick, high-level refresher on the Megapot protocol:

![What is Megapot](https://mintcdn.com/v2-megapot-docs/WmaHEO_YOAKEqfHy/images/backing/what-is-megapot.png?fit=max\&auto=format\&n=WmaHEO_YOAKEqfHy\&q=85\&s=5e0d4fa66eb1c1a36e6c675d187e68ea)

![Flywheel](https://mintcdn.com/v2-megapot-docs/WmaHEO_YOAKEqfHy/images/backing/new-flywheel.png?fit=max\&auto=format\&n=WmaHEO_YOAKEqfHy\&q=85\&s=e9f5040912c329dc9d090a4b2cf9b2c3)

Now, here's how backing the prize pool works:

![High Level](https://mintcdn.com/v2-megapot-docs/WmaHEO_YOAKEqfHy/images/backing/new-high-level.png?fit=max\&auto=format\&n=WmaHEO_YOAKEqfHy\&q=85\&s=1846460954b500eb8564e71092dafbf3)

![Mechanism Walkthrough](https://mintcdn.com/v2-megapot-docs/WmaHEO_YOAKEqfHy/images/backing/new-mech-walkthrough.png?fit=max\&auto=format\&n=WmaHEO_YOAKEqfHy\&q=85\&s=9ce7efb534695989028e948bb213973d)

***

## Understanding the Return Profile

Backers have a mathematical edge, for every dollar of tickets sold, they expect to earn approximately 12.5 cents after prizes are paid as compensation for taking on the variance of any single drawing.

> [!NOTE]
>
> As of June 25, 2026, the share of the edge accruing to Backers changed from \~20 cents to \~12.5 cents per dollar of tickets sold, with the difference redirected into larger prize payouts.

![Drawing Outcomes](https://mintcdn.com/v2-megapot-docs/WmaHEO_YOAKEqfHy/images/backing/drawing-outcomes.png?fit=max\&auto=format\&n=WmaHEO_YOAKEqfHy\&q=85\&s=21c8e7984071dfc377ff1cd87b1254e7)

Over hundreds or thousands of drawings, this edge compounds and trends toward expected returns.

![Compounding Returns](https://mintcdn.com/v2-megapot-docs/WmaHEO_YOAKEqfHy/images/backing/position-growth.png?fit=max\&auto=format\&n=WmaHEO_YOAKEqfHy\&q=85\&s=b02beaaac608fcdae387fde22f2cac6f)

Ultimately, it pays to stay in the pool over the long-term. Every outcome probability is known ahead of time and constantly working in the backer's favor.

> [!NOTE]
>
> For a more technical discussion of the return profile and to run your own profit simulations check out our [Jupyter Notebook](https://colab.research.google.com/github/coordinationlabs/backer-jupyter-notebook/blob/main/LP_Risk_Return_Analysis.ipynb).

***

## Next Steps

* Ready to back? Learn [How to Back the Pool](https://docs.megapot.io/guides/how-to-back-the-pool.md)
* Want to understand the full system? Read [The Ecosystem](https://docs.megapot.io/learn/the-ecosystem.md)
* Questions? Reach out on our [Support Chat](https://megapot.io/support)


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