Core Technology

POWERED BY SCIENCE

Sportsbook²

The Sportsbook² protocol is a processing layer in charge of monitoring risk. The protocol essentially functions as a market-maker aiming to offer the best possible odds for our players at any given moment.


Instead of charging fixed margins, Sportsbook² evaluates independent risk instances as part of a macro trend and adjusts a dynamic margin accordingly. Ultimately, enabling players to enjoy a free-to-play, zero margin zone, while charging increased commissions only for bets carrying higher risk.

Dynamic Margin

Team A

1.50%

0.50%

3.00%

Zero Margin Zone

0.50%

1.50%

3.00%

Team B

Induced Equilibrium

Our platform uses a system of game-theoretic price incentives to induce a parity of bets across possible outcomes. As the bet distribution becomes increasingly skewed towards a specific outcome, the betting engine will present more attractive prices for the other outcomes and vice versa.

Team A Base Price

w/ Discounted Margin

Team B Base Price

w/ Increased Margin

Behavior Based Analysis

While establishing a free-for-all, zero commission market is a compelling idea, it opens the platform for arbitraging.

 

Using deep learning of players interactions both on and off the platform over time, our engine formulates behavior based user profiles adding yet another layer of risk assessment.

Unweighted Dynamic Margin

Weighted Dynamic Margin

Behavior Based User Profile

Natural Convergence of Normal Distribution

In traditional sportsbooks, given a normal distribution of bets, the house is expected to win the margin. Since full distributions rarely occur, sportsbooks heavily pad margins to compensate for their imprecise EV models.

 

Our risk model naturally converges into a normal distribution, offering players a fair chance of winning, while eliminating unnecessary risks and maintaining a steady profitability.

Want to learn more? Contact us!