Is a 3% Payout Adjustment on Net Winnings Fair?

Some might argue that the 3% payout adjustment on winnings charged by ProphetX makes it no better than the traditional -110 odds offered by sportsbooks. However, a closer look reveals that playing on ProphetX still provides a better deal, even with the payout adjustment factored in. Let’s break down the numbers to understand why this is the case.

When you play with a traditional sportsbook offering -110 odds, you need to risk 110 units to win 100 units. This means the house has a built-in edge, taking a significant portion of your potential returns. On ProphetX, the competitive, peer-to-peer market allows for better prices, often closer to -102 or better. Even after accounting for a 3% payout adjustment on your winnings, the overall value remains higher.

For example, let's consider a successful play of 100 units. At a traditional sportsbook with -110 odds, you risk 110 units to win 100 units. On ProphetX, if you secure odds of -105, you risk 105 units to win 100 units. After a 3% payout adjustment on the 100 unit winnings, you keep 97 units. In this scenario, you risk 105 units to win 97 units, effectively playing at -108 odds. This is still a better deal than risking 110 units to win 100 units at a sportsbook, where the effective odds remain -110.

Thus, even with the 3% payout adjustment, ProphetX offers more favorable terms. The transparent and competitive nature of the exchange drives better prices, ensuring players receive more value for their picks. This edge not only enhances your potential returns but also highlights the efficiency and fairness of playing on an exchange like ProphetX compared to traditional sportsbooks.