One ticket wins only when every selection wins
A parlay combines several predictions into one bet. Each selection is often called a leg. If you pick YES on two questions, the ticket's full return depends on both questions finally resolving YES.
Each underlying market keeps its own question, sources, closing time and court process. The parlay adds a separate agreement about how those results determine one payout. Its receipt is the transferable token that owns that agreement.
The planned design accepts selections from markets that have already created transferable outcome tokens. Before acceptance, it fixes each selected outcome, the stake, total return, quote expiry and the rule for a cancelled selection. The sandbox rejects repeated questions, opposing selections on the same question and selections whose entry time has closed.
| Final answers | Ticket outcome |
|---|---|
| Every selection wins | Pay the fixed total return. |
| At least one selection loses and none is void | Pay zero once the remaining results are final. |
| Any selection is finally void | Return the original stake to the current receipt holder. |
| A result is still pending | Keep the funds needed for every remaining valid outcome locked. |
A void means the market has ended under its cancellation rule. An appeal or a temporary lack of information does not automatically cancel a selection.
Price the outcomes together
Independent operators called solvers compete to offer a fixed total return for your stake. They estimate how likely the selected outcomes are to happen together, include their pricing margin, and check whether they can fund the offer.
Multiplying separate market probabilities works only under an assumption that the events are independent. Rain and the cancellation of an outdoor match may be related. Two events each priced at 50% do not necessarily have a 25% chance of both happening.
Each solver must price the complete combination. The sandbox makes the assumptions explicit by assigning probabilities to possible combinations of answers. A missing price, an unsupported combination or insufficient capital produces no usable quote.
Reserve the whole return before issuing the ticket
The stake alone cannot back the promised return. For the $50 ticket paying $200, the bettor supplies $50 and the selected solver's allocated risk capital supplies $150. All $200 goes into escrow, funds locked under the ticket's release rules.
If every selection wins, the holder receives $200 and the capital provider loses its committed $150. If the ticket finally loses, the capital provider receives the $200, recovering its $150 and earning the $50 stake. If the ticket is void, the holder receives $50 and the provider recovers $150.
Fully funded means money exists to honour the accepted result. It does not mean the bettor is guaranteed to win. The ticket remains funded even if its solver stops offering new bets.
A combined claim has its own payout rule
Owning a YES token in each of two markets gives you two separate claims. One can pay while the other loses. A parlay receipt instead pays its full return only when both selected answers win. Creating a token to represent that rule does not create the money to pay it.
The receipt records the selected questions and answers, accepted stake and return, cancellation policy and associated escrow. Transferring it transfers the payout rights. The current owner receives a win or void refund, even if they bought the receipt later at a different price.
The original design called this a CTF receipt. CTF means Conditional Tokens Framework, a way to represent claims whose payouts depend on specified outcomes. The important properties for the holder are the fixed release rule and the reserved money behind the claim.
The earlier token-splitting proposal
An earlier proposal created claims for every combination of two answers: YES/YES, YES/NO, NO/YES and NO/NO. With $100 locked, only the claim matching the final pair of answers would redeem for $100 under that binary example.
The worked example had a bettor pay $20 to keep YES/YES while buyers paid $80 for the other combinations. One transaction would arrange temporary funding, create the complete set, sell the other claims and deliver the chosen ticket. If the required sales failed, the entire transaction would fail.
That proposal depended on buyers for the other combinations and a fully specified temporary-funding arrangement. The later solver design explained here reserves the maximum return from the stake and committed risk capital. It does not require those three sales to complete.
Separate lending income from parlay losses
A junior risk vault is a pool of money whose depositors agree to fund risky positions. “Junior” identifies the money that absorbs those losses. It earns the results of the accepted bets, including losses, rather than a promised interest rate.
Its terms state which strategies are allowed, how much can be committed and when money can be withdrawn. Money already promised to a ticket stays locked. In the sandbox, deposits are grouped into funding periods and final withdrawals wait until that period's funded positions have closed.
A depositor owns a share of that period's remaining money, including its gains or losses. Later deposits wait outside the active pool. The sandbox also limits a single ticket to 10% of the period's opening capital. A manager cannot change accepted risk terms midway through the period or withdraw money promised to someone else's ticket.
Protected YES and NO lending is a separate arrangement. Borrowers lock collateral to preserve the lender's original token payoff and pay agreed interest. That collateral is not available to cover a parlay loss. The lending example shows the difference.
A solver may use permitted trading strategies to manage its risk. The payout guarantee comes from the reserved ticket money. The current funding mechanism does not depend on a future trade succeeding.
Cashout is a purchase of your receipt
To leave early, ask solvers for bids to buy the receipt. They price the outcomes still unresolved and reserve cash for their offers. You can accept a valid bid, keep holding, or ask again later.
Cashout is available only when someone offers to buy. A pending appeal can change bids without changing the ticket's promised winning return. With no acceptable bid, the holder waits or keeps the ticket to settlement.