Frequently Asked Questions

Common questions about Kelly4X, answered.

General Questions

What is Kelly4X?

Kelly4X is a decentralized casino protocol that combines provably fair gambling (via TEE-based randomness) with liquidity provision. Players bet against liquidity pools managed by the Kelly Criterion, and winners can automatically receive LP tokens that earn passive yield.

What makes Kelly4X provably fair?

Kelly4X uses Trusted Execution Environments (TEEs) for randomness generation. The random number is generated inside hardware-protected enclaves (Intel SGX, AMD SEV-SNP, etc.) and signed with a private key that never leaves the TEE. Every bet includes cryptographic proof of fairness.

What blockchain does Kelly4X use?

Kelly4X is designed for EVM-compatible chains. The protocol supports multiple networks and can accept any ERC20 token (or native ETH) for betting and liquidity.

Is Kelly4X open source?

Yes, Kelly4X is open source. Smart contracts, TEE code, and frontend are all publicly available for review and verification.

Getting Started

What wallet do I need?

Any Web3 wallet that supports EVM chains works with Kelly4X. Popular options include MetaMask, Rainbow, Coinbase Wallet, WalletConnect-compatible wallets, and hardware wallets like Ledger.

What tokens can I bet with?

Kelly4X supports multiple tokens:

• Native ETH: Bet directly with ETH (no approval needed)
• USDC: Stablecoin for consistent bet sizes
• WETH, DAI: Common DeFi tokens
• Any ERC20: If there's liquidity, you can bet with it

How much does it cost to play?

To place a bet, you pay:

• Bet amount: Your wager (e.g., 0.1 ETH)
• Bet fee: Small fee (~$0.10-1.00) to cover TEE operator gas costs
• Attestation fee (optional): Extra fee to receive full TEE attestation report
• Gas fees: Standard network transaction costs

Playing Games

What games are available?

Currently available:

• Coin Flip: Classic 50/50 game

Coming soon:

• Dice: Configurable win probabilities
• Roulette: European and American variants
• Custom Games: Permissionless game registration

How long does bet settlement take?

Typically 2-5 blocks (~30 seconds to 1 minute). The process:

1. Place bet transaction (1 block)
2. TEE operator commits settlement (1 block)
3. TEE operator reveals random + signature (1 block)
4. Payout distributed

What happens if my bet doesn't settle?

If a bet isn't settled within 24 hours, you can cancel it yourself to receive a full refund of your bet amount plus the bet fee. This emergency mechanism protects players from TEE operator downtime.

What is auto-LP conversion?

Winners can choose to receive LP tokens instead of direct payouts. When you win:

• Normal payout (0x multiplier): Receive tokens/ETH directly to your wallet
• LP payout (1x-8x multiplier): Receive LP tokens that automatically earn yield

LP tokens can be withdrawn anytime or used for future bets. This creates an "infinite play loop" where you never need to withdraw.

Liquidity Provision

How do I become a liquidity provider?

Visit the Liquidity page, choose a token and Kelly multiplier tier (1x, 2x, 4x, 8x), and deposit tokens. You'll receive LP tokens representing your share of the pool.

What are the Kelly multiplier tiers?

• 1x Kelly (Conservative): Lowest risk, lowest returns. Risks 1% of pool per bet.
• 2x Kelly (Balanced): Moderate risk. Risks 2% of pool per bet.
• 4x Kelly (Aggressive): High risk. Risks 4% of pool per bet.
• 8x Kelly (Degen): Extreme risk. Risks 8% of pool per bet.

Higher multipliers participate in more bets and earn more fees, but also face higher potential losses.

How do LP providers earn?

LPs earn from the house edge on losing bets. The house edge (typically 1-5%) is distributed proportionally to pools based on their contribution to the bet. Earnings compound automatically in the pool.

Can I lose money as an LP?

Yes. When players win, LPs lose money proportionally. The Kelly Criterion manages this risk by limiting bet sizes relative to pool balance, but long winning streaks by players will decrease your LP value.

What is "locked" liquidity?

When bets are placed, the contract locks the amount at risk from each pool. Locked liquidity cannot be withdrawn until bets are settled. This ensures the protocol can always pay winners.

Security & Trust

Are the smart contracts audited?

No. Kelly4X smart contracts are currently UNAUDITED. While they implement security best practices (OpenZeppelin libraries, reentrancy guards, etc.), they have not undergone professional third-party audit. Use at your own risk.

How can I verify the TEE is legitimate?

The TEE provides cryptographic attestation reports that you can verify:

1. On-chain: Contract verifies TEE signatures match registered public key
2. Off-chain: Users can independently verify full attestation reports
3. Reproducible builds: TEE binary can be rebuilt and compared

See the Security page for details on attestation verification.

What if the TEE operator disappears?

If the TEE operator doesn't settle bets within 24 hours, players can cancel their bets and receive full refunds. The protocol is designed to protect users even if the operator goes offline.

Can the owner steal funds?

The owner cannot directly steal LP funds. However, the contract is upgradeable (UUPS pattern), so the owner could theoretically upgrade to malicious code. This is a trust assumption - choose whether to accept this risk.

Technical Questions

What is the Kelly Criterion?

The Kelly Criterion is a mathematical formula for optimal bet sizing: f = edge / (payout - 1). It determines how much bankroll to risk based on your edge and the odds offered. Kelly4X uses this to manage pool risk automatically.

What is cascading?

Large bets automatically cascade across multiple Kelly multiplier pools. Each pool only risks what its multiplier allows. For example, a $1000 bet might use $320 from 8x, $160 from 4x, $80 from 2x, and $40 from 1x pools.

What is sequential nonce enforcement?

Every bet has a nonce (sequence number). The TEE only accepts bets in strict sequential order, preventing the operator from selectively settling only favorable bets. This ensures all bets must be settled fairly.

Why commit-reveal settlement?

Settlement uses a 2-step commit-reveal process to prevent MEV attacks. The operator commits to a settlement hash, waits 1 block, then reveals the actual values. This makes it impossible to manipulate settlement based on other transactions in the same block.

Progressive Jackpots

What are progressive jackpots?

Some games have optional progressive jackpots with massive multipliers (e.g., 1000x). A small percentage of each bet contributes to the jackpot fund. Winners are determined by a separate random check.

Do jackpots use Kelly pools?

No. Jackpots are funded separately and don't affect LP pools. When a jackpot hits, it's paid from the jackpot fund, not from LP liquidity.

Fees & Costs

What fees does Kelly4X charge?

• Platform fee: 0-2% of winnings (set per-game, goes to protocol treasury)
• Bet fee: Small ETH fee (~$0.10-1.00) to cover settlement gas
• LP fees: None. LPs earn from house edge on losing bets.

Where do house edge earnings go?

The house edge is distributed to LP providers proportionally based on their pool contributions. Platform fees (if set) go to the protocol fee recipient.

Support & Community

Where can I get help?

• Read the Documentation
• Check the Security page for trust assumptions
• Review your transactions on block explorer
• Join community channels (if available)

How do I report a bug or security issue?

For security vulnerabilities:

• Do NOT exploit or publicly disclose
• Contact through official channels only
• Provide detailed information and proof-of-concept

For non-security bugs, open an issue on GitHub (if repository is public).

Responsible Gambling

Should I bet on Kelly4X?

Only bet what you can afford to lose completely. Understand that:

• The house edge means players lose money over time (mathematically)
• Short-term wins are possible, but long-term expected value is negative
• Smart contracts are unaudited and may contain bugs
• This is experimental software - treat it as such

Do you offer gambling addiction support?

If you or someone you know has a gambling problem, please seek help:

• National Council on Problem Gambling: 1-800-522-4700
• Gamblers Anonymous: gamblersanonymous.org