The Bankroll

The WINR Bankroll is the onchain pool of liquidity that pays out every game connected to the protocol.

It is the house.

Liquidity providers deposit capital into the bankroll. Games route bets to it. WINR settles outcomes and pays winnings directly from this pool.

All funds live onchain. Game results are committed to the Escrow contract every five minutes via Merkle roots, and players can withdraw trustlessly using Merkle proofs.

How the Bankroll Works

The bankroll follows a simple flow:

Liquidity providers deposit USDC into the bankroll vault and receive jUSDC.
Games run off-chain for speed. Results are batched and committed to the onchain Escrow contract every five minutes as Merkle roots.
Players can withdraw winnings trustlessly using Merkle proofs against the posted roots.
The bankroll vault tracks profit using a High-Water Mark. During drawdowns, all profit heals the vault before any revenue is distributed.
Above the high-water mark, net profit is split: 40% to LPs via jUSDC appreciation, 20% to WINR stakers, 40% to the protocol.

There are no manual actions and no custody. Game logic runs off-chain for performance, but all settlement commitments are posted onchain and withdrawals are trustless.

The bankroll does not rely on trust or assumptions. Settlement results are committed as Merkle roots and can be independently verified. Players withdraw against cryptographic proofs, not operator promises.

Risk Control by Design

Key protections include:

Maximum payout limits per settlement
Drawdown thresholds over time
Automatic tightening of exposure during high volatility
Deterministic settlement logic enforced by smart contracts

This ensures that no single bet or streak can drain the bankroll unexpectedly. Risk is bounded at all times.

Stabilization Behavior

When the bankroll experiences elevated losses or abnormal conditions, it enters a protective state.

During this period:

Maximum payouts are temporarily reduced
Withdrawals may be rate limited
Exposure is tightened until performance normalizes

Games continue to operate. Players are not blocked. The system adapts automatically.

Once metrics return to healthy ranges, normal parameters resume.

The High-Water Mark ensures that during any drawdown period, 100 percent of bankroll profit goes toward healing the vault back to its previous peak before any revenue is distributed to LPs, stakers, or the protocol.

How the Bankroll Makes Money

The bankroll earns from real gameplay.

When players win, the bankroll pays out from protocol liquidity. When players lose, those losses contribute to gross gaming revenue.

Before revenue is shared at the protocol level, the platform deducts:

Creator rewards
Affiliate commissions
Any applicable VIP cashback

The remaining amount becomes net gaming revenue.

Net gaming revenue is the basis for LP, staker, and protocol allocations.

If there is no positive NGR after deductions, there is nothing to distribute under this split.

Revenue Allocation

Protocol revenue is tied to net gaming revenue, not raw player losses alone.

After gross gaming revenue is generated, creator rewards, affiliate commissions, and any applicable VIP cashback are deducted. The remaining amount becomes net gaming revenue.

Net profit above the High-Water Mark is split 40% to LPs, 20% to WINR stakers, and 40% to the protocol.

LP share is delivered through jUSDC appreciation. Staker and protocol shares are distributed as USDC.

Net gaming revenue is then allocated as follows:

40% to liquidity providers
20% to WINR stakers
40% to the protocol

Creator and affiliate settlements are handled separately on their own cadence. LP revenue is reflected continuously through jUSDC appreciation every five minutes. Staker and protocol allocations are processed in weekly epochs.

If there is no NGR to allocate, there is no distribution to these buckets.

All accounting is verifiable onchain.

Providing Liquidity

Liquidity providers participate directly in the bankroll. The process is simple:

Deposit USDC into the bankroll vault
Receive jUSDC tokens representing your share of the vault
Earn as jUSDC appreciates in value every five minutes

jUSDC represents a claim on the vault and its future earnings. There is no impermanent loss. Exposure is purely to game outcomes within enforced limits.

Withdrawals are always possible. A small time-weighted fee applies to early withdrawals: 0.5% if withdrawn within 24 hours, decaying to zero over 7 days. There are no lockups.

Bankroll Access for Games

Operators and creator platforms do not manage their own bankrolls. They integrate once and route settlements to WINR.

This gives them:

Instant access to liquidity
No balance sheet risk
No payout management
No hidden liabilities

WINR handles the house. Operators focus on games and users.