Dynamic Risk Matrix for Gambling Control
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Solution Overview
Problem
Conventional lottery games lack player control over risk and reward levels, leading to potential gambling addiction due to 'near miss' cognitive mechanisms, and do not allow participants to adjust odds or payout structures based on their preferences.
Innovation Solution
A software framework that enables investors to create and manage their risk exposure between 0% and 100% by generating probabilities and payout structures dynamically based on the number of participants, allowing for customizable win/loss probabilities and maximum payouts, implemented as a peer-to-peer cloud-based financial instrument on the blockchain.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If conventional lottery games are played with fixed odds and payout structures, then the game provider maintains a house edge and profit, but players lack control over risk exposure and may develop gambling addiction due to near miss cognitive mechanisms
Solution Approach 1:
The patent implements dynamic odds and payout structures that adjust based on player choices. Players can select different risk levels (0% to 100%) which dynamically change the probability of winning and corresponding payouts. This transforms static lottery games into dynamic systems where players have genuine control over their risk exposure, resolving the contradiction between fixed house edge and player control.
Solution Approach 2:
The system allows players to change key parameters of the gambling game including risk percentage, number of winners, and payout amounts. By enabling parameter changes, players can adjust the game to their preferred risk level, eliminating the fixed house edge while maintaining game integrity through cryptographic verification of all parameter changes.
2Object-generated harmful factors
If players are given full control over odds and payouts in gambling games, then gambling addiction may be reduced, but the complexity of the game system and rule management increases significantly
Solution Approach 1:
The patent implements self-service mechanisms where players independently configure their own risk parameters and payout structures without requiring complex intermediary verification. The system automatically calculates fair odds and manages game state based on player selections, reducing the need for complex rule enforcement while maintaining integrity through cryptographic proofs that verify parameter changes autonomously.
Solution Approach 2:
The system provides real-time feedback to players about the implications of their parameter choices, showing expected values, probabilities, and potential outcomes before confirmation. This feedback mechanism simplifies decision-making by presenting clear information about risk-exposure relationships, reducing the cognitive complexity burden on players while enabling informed control over gambling parameters.
3Object-generated harmful factors
If dynamic risk levels and payout structures are implemented, then players can choose healthy risk levels and reduce near miss effects, but the computational requirements and system resources increase
Solution Approach 1:
The patent calculates and verifies all odds, probabilities, and payout structures in advance before the gambling game begins. By performing preliminary computations of expected values and win probabilities based on selected parameters, the system eliminates the need for complex real-time calculations during game execution. This pre-computation approach reduces near miss effects by showing players actual probabilities beforehand while minimizing computational resource consumption during actual gameplay.
Data Source
AI summary
A system and method for user created 2-dimensional risk classes and levels is described. In one embodiment, this matrix allows the user to create and select risk thresholds for the placement of bets that from an investment perspective can lead to the construction of a new type of financial instrument similar to low yield, low risk government issued bonds. In a second embodiment this is a zero-consideration contest where users compete at no cost for prizes to be awarded. In a third embodiment (and where it is legal to do so), this is a gambling application. The risk matrix is created and managed by the user and no one else. Included are computer runs that highlight important aspects of the invention. Finally, a tangible new game embodiment is described that replaces a standard Roulette table surface and wheel with new embodiments that implement the 2-dimensional risk classes described herein.