Parlays Market Making

In this page we dive into the details of the Thales Protocol architecture for Parlays of Thales Sports Markets!

Parlays are a common feature in centralized sports markets that allow traders to expand their positions to multiple markets with one potential payout. A parlay combines multiple wagers into one position by rolling over the winnings from each individual wager into the next leg of the wager. Each “leg” or individual position in the parlay must win for the parlay to be deemed a winner.

By using the Parlay AMM, users of Thales Sports Markets can string together multiple positions into a one parlay ticket and experience a whole new leveraged dimension for trading sports markets.

How the ParlayAMM works

When user buys a Parlay Ticket, the ParlayAMM contract locks the full amount of a potential payout taken from the Parlay Liquidity Pool. The contract reads all the latest odds from the SportsAMM but it does not apply any slippage logic of the SportsAMM. Parlay AMM just multiplies the default odds to get the potential payout.

Risk management of the ParlayAMM revolves around having risk caps per unique positions within parlay tickets. This means that the ParlayAMM stores the risk amount of each market within a parlay into a new variable called RiskPerMarketAndPosition. Data within the RiskPerMarketAndPosition variable is then used to block further parlays that exceed the risk cap defined in the RiskManager contract.

Same Game Parlays

Traders can combine positions from a single game with Same Game Parlay positions. This means you can choose one position that includes outright winner (HOME or AWAY) combined with the Total Points spread (OVER or UNDER total point for both teams for that market). Same Game Parlay positions include the following:

  • 1 and O (HOME team win and total points OVER the spread)

  • 1 and U (HOME team win and total points UNDER the spread)

  • 2 and O (AWAY team win and total points OVER the spread)

  • 2 and U (AWAY team win and total points UNDER the spread)

Same Game Parlay positions can be purchases as single positions or as part of a parlay. These positions are currently available for NBA (Basketball), NHL (Hockey), MLB (Baseball) EuroLeague (Basketball), Champions League (Football/Soccer) and the English Premier League (Football/Soccer).

ParlayAMM Specs and Limits

  • Parlays incur a 3% Parlay Fee, plus the normal Safebox Fee of 3%

  • Buy-in is a minimum of 3 USD

  • Parlays are limited to 10 positions

  • A single parlay can’t have the same team/player/fighter in the same parlay, even with a different date

  • Only 1 motorsport market is allowed per a single parlay

  • Buys only right now

  • The minimum price quote is 0.01 (or 100x) combined quote for each market Combined Price Quotes for Parlay's

Market Cancellation Logic

If a market included in your parlay is cancelled, that market's quote is effectively removed. If you have 4 markets and 1 of them is cancelled, your initial collateral is essentially now applied to 3 markets instead of 4. The calculation for your total parlay’s quote replaces the cancelled market with 1. If you have a parlay with 0.5, 0.3 and 0.6 Implied Odds (0.5 x 0.3 x 0.6 comes to a combined quote of 0.09) and the game with 0.3 Implied Odds is cancelled, the new calculation is 0.5 x 1 x 0.6 (a combined quote of 0.3).

Last updated