Key Terms & Definitions

House

The collective entity that provides the funds to pay out winnings to players. At Narwhals, the "house" consists of all Liquidity Providers (LPs) who have contributed funds to the casino's bankroll. When you play against the house, you're essentially playing against this pool of funds provided by LPs, who share in both the risks and rewards of the casino's operations.

House Edge

The mathematical advantage that the casino maintains over players, expressed as a percentage. This represents the difference between the true odds of an outcome and the payout odds offered to players. For example, if a game has a 2.5% house edge, the casino expects to retain 2.5% of all money wagered over time, while returning 97.5% to players as winnings.

Wager

The amount of money a player risks or bets on a single game round. This is the stake you put at risk before any game begins. For example, if you bet $10 on a coin flip, your wager is $10.

Payout

The total amount returned to a player after a game concludes, including both their original wager (if they win) and any additional winnings. If you wager $10 and win with a 2x multiplier, your payout would be $20 total.

Multiplier

A number that determines how much a player wins relative to their original wager. Multipliers are specific to each game and outcome. For example:

• 1x multiplier = break even (get your wager back)

• 2x multiplier = double your money

• 10x multiplier = win 10 times your original wager

Profit

The net amount a player gains after a winning game is calculated as the payout minus the original wager. Using the example above: if you wager $10 and receive a $20 payout (2x multiplier), your profit is $10 ($20 payout - $10 wager = $10 profit).