A feature of the V3 protocol is the ability for prize pools to have caps on the amount of assets deposits. These caps can be set by whoever created the prize pool. Currently for the pools hosted on PoolTogether.com the core team has that privilege before it is transferred fully to the community.
These caps were designed as an option to improve security during testing by making it impossible for prize pools to get too big. However, they can also serve a dual purpose of helping to keep the prize awarding fair!
As discussed in the post on “fairness parameters” due to 1) the very high value of external prizes added to this week’s prize and 2) the relatively small total pool size. It is economically viable for someone with $1,000,000+ to have a good chance of winning the prize without contributing fair value in return. To prevent this, we can place a temporary capital cap on the pool.
Concretely, I’d propose that we do not want anyone to be able to get a greater than 10% chance of winning within 12 hours of the prize being awarded. As of right now, the total pool size is $522,000 so that would mean setting a cap $52,000 higher.
If the pool grows between now and 12 hours before the prize it should be set based on the total pool value then. Once the prize has been awarded, the cap can be removed and only re-instated if a similar situation happens in the future.