> For the complete documentation index, see [llms.txt](https://pudu-1.gitbook.io/pudu_docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pudu-1.gitbook.io/pudu_docs/pudu-system/price-prediction-betting.md). # Price Prediction Betting ## Pool Betting Due to its complete decentralization, PuDu operates without the need for brokers to determine odds before events occur. Instead, PuDu employs a core system known as "**Pool Betting**." This betting approach is widely recognized, commonly used in various forms of racing and sports events like horse racing, greyhound racing, and certain competitive esports. This system seamlessly aligns with the decentralized nature of a prediction market.
### How does it work ? Within a pool betting system, all wagers made on a specific event are combined to establish a prize pool. The distribution of this pool among successful bettors is contingent on both the event's outcome and the magnitude of their wagers. A distinctive feature of pool betting lies in its dynamic odds, continually adjusting in real-time with the influx of additional bets, mirroring the evolving sentiments of the betting public. Pool betting carries notable potential for substantial payouts, particularly when unexpected outcomes occur. This ever-changing nature of the odds introduces an element of excitement and unpredictability to the betting experience. Additionally, the system fosters transparency by openly displaying the total amount wagered and the payouts to winning bettors throughout the betting process. In the realm of PuDu, d**ecentralization, transparency, trustlessness, and an enjoyable experience** are at the forefront. #### Example : Bob, Alice, John, Mary and Chris want to bet on the price of $BITCOIN in 24h. * Bob bets $3,000 on Pump (has 50% of the Pump side) * Alice bets $2,000 on Pump (has 33.33% of the Pump side) * John bets $1,000 on Pump (has 16.67% of the Pump side) * Mary bets $3,500 on Dump (has 58.33% of the Dump side) * Chris bets $2,500 on Dump (has 41.67% of the Dump side) So, there are $12,000 in the pool. After 24 hours, the price of $BITCOIN exceeds the settlement price, declaring the Pump team as winners. Those on the winning side can now claim their share of the entire pool. * Bob will claim $6,000 (50% of the whole pool) * Alice will claim $4,000 (33.33% of the whole pool) * John will claim $2,000 (16.67% of the whole pool) {% hint style="warning" %} Note these calculations were made without taking into account the PuDu fee (5%) in order to simplify the example. {% endhint %}