# Prize Structure

Megapot offers 10 winning prize tiers, giving you many ways to win beyond just the jackpot. With 1 in 4 tickets winning something, your chances of walking away with a prize are better than you might expect.

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## How Tickets Work

Each ticket costs $1 USDC and contains:

* **5 normal numbers** (selected from 1-30)
* **1 bonusball** (selected from a separate, dynamic range)

You can pick your own numbers or use Quick Pick for random selections. Either way, your ticket is minted as an NFT that you own.

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## Prize Tiers

There are 10 winning combinations, ranging from matching just the bonusball to hitting the full jackpot:

| Normal Matches | Bonusball | Premium Allocation | Description                    |
| -------------- | --------- | ------------------ | ------------------------------ |
| 5              | Yes       | 40%                | The big one - match everything |
| 5              | No        | 6%                 | All 5 normal numbers           |
| 4              | Yes       | 6%                 | 4 normals + bonusball          |
| 4              | No        | 6%                 | 4 normal numbers               |
| 3              | Yes       | 6%                 | 3 normals + bonusball          |
| 3              | No        | 12%                | 3 normal numbers               |
| 2              | Yes       | 12%                | 2 normals + bonusball          |
| 2              | No        | 0%                 | 2 normal numbers               |
| 1              | Yes       | 12%                | 1 normal + bonusball           |
| 1              | No        | None               | 1 normal                       |
| 0              | Yes       | 0%                 | Bonusball only                 |
| 0              | No        | None               | None                           |

**What does NOT win:**

* No matches at all (0 normal numbers, no bonusball)
* 1 normal number only (no bonusball)

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## How Payouts Are Calculated

Megapot uses a two-part payout system that combines guaranteed minimums with premium payouts. Here is how it works:

### Step 1: Guaranteed Minimums

Each winning tier (except no-win combinations) has a guaranteed minimum payout per ticket. This means if you win, you are assured at least a baseline prize.

### Step 2: Calculate Total Guarantees

Before distributing premiums, the system calculates all potential winners across the ticket pool. This includes any unpurchased ticket combinations.

### Step 3: Create the Premium Pool

After all guaranteed payouts are set aside, what remains becomes the "premium pool." This is the extra prize money available on top of the guaranteed minimums.

### Step 4: Distribute Premium Payouts

Each tier is assigned a percentage of the premium pool based on how many numbers you matched. Higher tiers receive a larger share of the premium.

### Step 5: Final Payout

Your total payout = Guaranteed minimum + Your ticket's share of the premium for your tier

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## What About Duplicate Numbers?

Since players can choose their own numbers, multiple tickets might share the same winning combination. Here is how that affects payouts:

**Guaranteed portion**: Every winning ticket receives the full guaranteed minimum, regardless of duplicates. If 10 tickets share the same winning numbers, all 10 get the guaranteed payout.

**Premium portion**: The premium for that tier is split among all winning combinations (including unpurchased tickets) for that tier *plus* duplicate tickets. More duplicates mean a smaller premium share for each.

**What this means for you**: Picking unique number combinations can result in larger payouts if you hit a premium tier, since you would not be splitting the premium with others who chose the same numbers.

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## Understanding Your Odds

### Why Odds Vary

Your odds of winning depend on two factors:

1. **Normal numbers**: Always selected from 1-30
2. **Bonusball range**: This is dynamic and adjusts based on prize pool size

### Dynamic Bonusball Range

The bonusball range changes to keep the system sustainable:

* **Larger prize pool** = Wider bonusball range = Harder jackpot odds
* **Smaller prize pool** = Narrower bonusball range = Better jackpot odds

This adjustment ensures the prize pool can cover expected payouts while still offering meaningful prizes.

### The Numbers

* **1 in 4 tickets** wins something across all tiers
* **Lower tiers** (matching just the bonusball or 1-2 numbers) have reasonable odds
* **Jackpot odds** are long, as with any major lottery

### Compared to Traditional Prize Games

Megapot returns approximately 70% of ticket sales as prizes, compared to 50% or less for many traditional operators. This means more of each dollar goes back to winners.

However, like any lottery, the jackpot remains a long shot. The difference is that Megapot is transparent about the odds, and you can verify exactly how every drawing works on-chain.

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## Expected Value

We believe in being upfront: like all lotteries, Megapot has a house edge. For every $1 ticket:

* **\~70%** is returned as prizes to winners
* **\~20%** goes to Backers (who fund the prize pool)
* **\~10%** goes to Referrers (who help grow the community)

This means the expected return per ticket is approximately $0.70. You are paying for the chance to win, not for a guaranteed return.

The difference from traditional games: instead of ticket revenue leaving the ecosystem, that 30% goes directly to community members (Backers and Referrers) who make Megapot possible.

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## Prize Pool Size and Payouts

The size of the prize pool directly affects your potential winnings:

* **Larger pool** = Bigger prizes across all tiers
* **More tickets sold** = More revenue = Larger pool

The jackpot grows as more players participate. The current jackpot is always displayed before you buy, so you know exactly what is at stake.

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## Key Takeaways

1. **10 winning tiers** - Many ways to win beyond the jackpot
2. **1 in 4 tickets wins** - Better odds of winning something
3. **Guaranteed minimums** - Every winner gets at least the baseline
4. **Premium payouts** - Extra winnings on top of guarantees
5. **Unique numbers matter** - Avoid duplicates for potentially larger premiums
6. **\~70% back to winners** - More than traditional operators return
7. **Transparent odds** - Everything is verifiable on-chain

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## Next Steps

* [How to Play](https://docs.megapot.io/getting-started/how-to-play) - Buy your first ticket
* [Provably Fair](https://docs.megapot.io/getting-started/provably-fair) - How randomness is generated
* [The Ecosystem](https://docs.megapot.io/learn/the-ecosystem) - How Players, Backers, and Referrers work together
