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

# Parlay fees

# Parlay Fees

Parlays have a unique fee structure that compounds across legs while maintaining the same risk-based principles as single bets.

## How Parlay Fees Work

Each leg of a parlay incurs fees that compound together:

```
Total Parlay Fee = System Fee + Compounded Market Fees
```

### System Fee

* **0.3% base fee** applied to the gross parlay amount
* Same as single bets

### Market Fee (Per Leg)

Each leg has its own market fee based on that game's current vault exposure:

```
Leg Fee Rate = Current Imbalance / Vault Assets
```

The fees compound multiplicatively across all legs.

## Example: 3-Leg Parlay

**Setup:**

* Gross bet: \$100
* Leg 1: 1.5% market fee rate
* Leg 2: 2.0% market fee rate
* Leg 3: 0.5% market fee rate

**Calculation:**

```
System fee: $100 × 0.3% = $0.30
After system fee: $99.70

Leg 1: $99.70 × (1 - 1.5%) = $98.21
Leg 2: $98.21 × (1 - 2.0%) = $96.24
Leg 3: $96.24 × (1 - 0.5%) = $95.76

Total fee: $100 - $95.76 = $4.24 (4.24%)
```

## Key Differences from Single Bets

| Aspect     | Single Bets    | Parlays                    |
| ---------- | -------------- | -------------------------- |
| Fee cap    | 3% maximum     | **No cap** - fees compound |
| System fee | 0.3%           | 0.3%                       |
| Market fee | Linear average | Multiplicative compounding |

## Why No Cap on Parlays?

Parlays inherently carry more risk:

* Multiple games must all hit
* Longer exposure time
* Higher potential payouts

The compounding fee structure reflects this compounded risk while still rewarding users who pick balanced legs.

## Minimizing Parlay Fees

To get the best rates on parlays:

1. **Pick underbet sides** - Legs on less popular sides have lower market fees
2. **Avoid heavily loaded games** - High-exposure games have higher per-leg fees
3. **Balance your selections** - Mixing favorites and underdogs often results in lower total fees

## Parlay Cashout

Parlays can be cashed out before completion. The cashout calculation uses:

```
Cashout Value = Current Probability × Potential Payout × (1 + Fee Rebate)
```

The fee rebate scales with how much value your position has gained since entry:

* Position doubled in value → 2× the initial fee as rebate
* Position tripled → 3× rebate

This rewards successful parlay picks even on partial cashout.