How do we calculate valid wagers?

Absolute value: It is a number's distance from zero on the number line, regardless of direction. It’s always non-negative. For example:

• |5| = 5

• |-5| = 5

Payout = risk amount + winnings

Valid Wager: Uses absolute value.

Formula:

Valid Bet = |Payout − Bet Amount| Note: The valid bet amount cannot exceed the original risk amount.

Examples

Single Bet: Wager $110, Possible Win $100

• If you win:

  • Payout = $110 (original bet) + $100 (profit) = $210

  • Valid Bet = $210 − $110 = $100 Since this is less than your original bet, your valid bet is $100

• If you lose:

  • Payout = $0

  • Valid Bet = |$0 - $110| = $110

  • Your valid bet is $110

Parlay Bet: Wager $100, Possible Win $230

• If you win:

  • Payout = $100 (original bet) + $230 (profit) = $330

  • Valid Bet = $330 − $100 = $230 But since this exceeds your original bet, your valid bet is capped at $100

• If you lose:

  • Payout = $0

  • Valid Bet = |$0 - $100| = $100

  • Your valid bet is $100