# Lottery Creation

A Sponsor determines the following lottery parameters which are encoded in the MSC for that lottery:

| PARAMETER                       | DETAILS                                                                                                                                                                                                                                 |
| ------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Item Description                | Includes Web2 links with images and more details                                                                                                                                                                                        |
| Lottery Duration                | How long the lottery lasts, in time (lottery closes with closest block after this duration)                                                                                                                                             |
| Price of Item                   | Price Sponsor receives for each item, which is also the minimum stake price for the Participant. Includes the Currency of Account                                                                                                       |
| Quantity Available              | Number offered, Q >= 1                                                                                                                                                                                                                  |
| Sponsor Tokens Accepted         | Which tokens the Sponsor will count towards ticket weight – can include other Sponsor-created tokens.                                                                                                                                   |
| Collateral                      | How much money is locked into the winning NFT.                                                                                                                                                                                          |
| Fulfillment Details             | A statement on how the Sponsor plans to trade the winning NFT for the good – be it physical or digital. Will also include shipping restrictions – highly important!                                                                     |
| Ticket Weight Factor Parameters | Explained in detail [here](https://dropshop.gitbook.io/docs/platform-information/logic/ticket-weight-factor-function).                                                                                                                  |
| Redemption Period               | How long after the lottery the winning NFT can be held or traded before it must be claimed. After this time, a Sponsor could refuse to exchange for the good thereby forcing the holder to burn for any collateral locked into the NFT. |
| (Optional) Start Date/Time      | Lotteries can be triggered to start at a certain point in the future using Keepers. Optional due to additional cost to implement.                                                                                                       |

{% hint style="warning" %}
Currency of Account *must* be in a stablecoin or stable fiat currency.
{% endhint %}

#### Collateral

Being an open platform, Sponsors are *highly* encouraged to collateralize their lotteries in order to give Participants some insurance for their stake.  This is achieved by locking value into each winning NFT at the creation of a lottery. A lottery is considered *fully-collateralized* if the value locked in each NFT is the same as the price of the good.  The collateral must be in the Currency of Account for the lottery. 

{% hint style="info" %}
Note: Collateral will not represent the total value staked for those winners who included a price premium
{% endhint %}