> For the complete documentation index, see [llms.txt](https://docs.megalottery.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.megalottery.fun/the-lottery/payouts-and-claims.md).

# Prizes, claims & win deductions

## Prize distribution

Every completed draw uses the pot saved at snapshot time.

| Result           | Share | What the winner receives                         |
| ---------------- | ----: | ------------------------------------------------ |
| 1st place        |   50% | ETH                                              |
| 2nd place        |   30% | ETH                                              |
| 3rd place        |   15% | ETH                                              |
| Buyback and burn |    5% | Swapped for `$MEGA` and sent to the burn address |

## How a winner receives ETH

Normally the contract pushes ETH directly to the winning address during settlement. The holder does not approve, sign or claim anything.

{% hint style="success" %}
**Normal case:** the draw settles and ETH appears automatically in the winning wallet.
{% endhint %}

## When `claim()` is needed

Some smart-contract wallets reject a direct ETH transfer. In that case:

1. the draw still completes;
2. the failed amount is recorded in `unclaimedPrizes` for that winner;
3. the ETH remains reserved inside the lottery contract;
4. the winning wallet can later call `claim()`.

Reserved prizes are excluded from the available lottery treasury, so they cannot be paid to somebody else in a later draw.

## What winning changes

Winning reduces the winner's live WP, not the token balance.

| Place | Prize | WP deduction |
| ----- | ----: | -----------: |
| 1st   |   50% |          30% |
| 2nd   |   30% |          20% |
| 3rd   |   15% |          10% |

The deduction is calculated from the wallet's WP in the committed snapshot.

### Example

A wallet had 50 WP when the snapshot was created and later wins first place:

```
snapshot WP:       50
first-place cut:   15 WP
new live WP:       35
$MEGA removed:      0
```

Buying more can raise raw WP again. Selling releases the deduction proportionally; selling the entire balance clears the remaining deduction attached to that balance.

## What if the buyback fails?

The buyback cannot block winner payments. If Uniswap cannot execute the swap, the 5% ETH remains in the lottery treasury instead of reverting the completed prizes.


---

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