> For the complete documentation index, see [llms.txt](https://docs.paramlabs.io/param-litepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.paramlabs.io/param-litepaper/ecosystem/modular-gaming-ecosystem/infrastructure/param-pools-wager-system.md).

# Param Pools Wager System

<figure><img src="/files/40CdSCmwBBSnR1pmPf4H" alt=""><figcaption></figcaption></figure>

Param Pools introduces a groundbreaking shift in competitive gaming. Utilizing smart contracts as an automated escrow, players can stake amounts in the pool and claim the pooled funds when they win a game.
This offers immediate potential returns and ensures tangible rewards. With Param Pools, every match becomes a chance for transparent, and real economic gain.

During each wager, a 5% fee is deducted from the pooled funds which is sent to the Param treasury and acts as a revenue stream for the Treasury.\
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**Written Example:**

(Two Players Enter Wager - 100 $Param each)

200 $Param is stored in the smart contract escrow

5% fee is deducted and sent to Param Treasury

Escrow contract releases 190 $Param to the winner

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