> ## Documentation Index
> Fetch the complete documentation index at: https://docs.coinlotto.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Tier

## Overview

The Tier model distributes the Prize Pool across predefined winning positions.

Instead of calculating the number of winning tickets based on a target value, the lottery configuration defines the prize positions and the percentage of the Prize Pool assigned to each position.

After the lottery draw is completed, winning tickets are ranked and assigned to the configured prize positions.

The Tier model is best suited for traditional lotteries where each winning position receives a predefined share of the Prize Pool.

## Rules

* Up to **20** prize tiers can be configured.
* Each prize tier represents one winning position.
* The total Prize Pool allocation across all prize tiers must equal **100%**.
* Each prize tier receives its configured percentage of the final Prize Pool.

## How it works

When the lottery is created, its prize structure defines the winning positions and the percentage of the Prize Pool assigned to each position.

When the draw is finalized, the protocol selects the winning ticket numbers and ranks them according to the draw results.

The highest-ranked winning ticket receives the **Tier 1** prize, the second-ranked winning ticket receives the **Tier 2** prize, and the process continues until all configured prize tiers have been assigned.

## Example

### Configuration

**Prize Pool:** 10,000 USDC

| Prize Tier | Winning Position | Prize Allocation |
| - | - | - |
| Tier 1 | 1st Place | 50% |
| Tier 2 | 2nd Place | 30% |
| Tier 3 | 3rd Place | 20% |

### Calculation

Prize amounts are calculated from the configured Prize Pool allocation.

* Tier 1 → 10,000 × 50% = **5,000 USDC**
* Tier 2 → 10,000 × 30% = **3,000 USDC**
* Tier 3 → 10,000 × 20% = **2,000 USDC**

### Final result

| Winning Position | Prize |
| - | - |
| 1st Place | 5,000 USDC |
| 2nd Place | 3,000 USDC |
| 3rd Place | 2,000 USDC |

## Summary

The Tier model distributes the Prize Pool across predefined winning positions. Each prize tier receives a fixed percentage of the Prize Pool, making this model ideal for lotteries with structured prize rankings, such as 1st, 2nd, and 3rd Place.

## Related Pages

* [Prize Distribution](/lottery-mechanics/prize-distribution)
* [Prize Pool](/lottery-mechanics/prize-pool)
* [Lottery Draw](/lottery-mechanics/lottery-draw)
* [Claiming Rewards](/lottery-mechanics/claiming-rewards)


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