Risk Premium — Poker Definition

Quick answer

Risk premium: the additional equity a tournament player may require before accepting a chip-risking confrontation because losing chips can reduce prize equity more than winning the same chips increases it.

Why it matters

Risk premium helps explain why a call can be profitable in chip terms but unattractive under a tournament payout model. It is especially visible on Double Up and satellite bubbles.

Example

A medium stack with two shorter stacks alive may fold a hand it would call in a cash game because busting now yields zero while folding preserves a strong chance of receiving the flat prize.

Related reading

ICM Basics

Learn the broader tournament-value model.

Read guide →

Last updated: August 26, 2026 · Publisher: Double Up Poker