# TC, stake and payout: let's get some facts straight

**URL:** <https://forum.numer.ai/t/tc-stake-and-payout-lets-get-some-facts-straight/5730>\
**Category:** Tournament\
**Created:** [September 27, 2022, 7:51pm UTC](https://forum.numer.ai/t/tc-stake-and-payout-lets-get-some-facts-straight/5730 "2022-09-27T19:51:57Z")\
**Posts on this page:** 1\
**Showing post:** 9

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**Author:** ![taori](https://avatars.discourse-cdn.com/v4/letter/t/ebca7d/32.png) [@taori](https://forum.numer.ai/u/taori)\
**Post date:** [September 29, 2022, 6:59am UTC](https://forum.numer.ai/t/tc-stake-and-payout-lets-get-some-facts-straight/5730/9 "2022-09-29T06:59:05Z")

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Exactly!

Also to make an even more extreme example on the current payout method, let’s say an extremely good model stake is 50% of the total tournament stake. Since this is an extremely good model the portfolio optimizer keeps its contribution ~50% at every round, thus TC will tend to be 0. This incredibly great model will be paid ~0 NMR every round although its actual contribution is 50%! Sometimes it will even get negative TC, due to the little stake adjustments required to keep all the stake weighted portfolio optimal.

See [here](http://forum.numer.ai/t/question-on-tc-is-it-true-contribution-or-something-else/5134/).

Being paid on TC doesn’t really make sense. TC is not a measure of the true contribution of a model, is a measure of how noisy the tournament is: more noise → more TC is required to keep the stake weighted portfolio optimal (with noise I mean market volatility, model changes, user stake changes)

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