Chip EV (cEV) (cEV)

Also known as: Chip EV, cEV, chip expected value

Expected value measured purely in tournament chips, ignoring payout structure and ICM.

Chip EV is the expected value of a decision counted in chips won or lost, treating every chip as equal. It is the right currency in a cash game (where chips are dollars) and in the deep, early stages of a tournament where the payout ladder is far away and ICM pressure is negligible.

The formula is the standard expectation:

\[ \text{cEV} = \sum_i p_i \cdot c_i \]

where \(c_i\) is the chip outcome of branch \(i\). A break-even flip for equal stacks is 0 cEV — exactly 50% equity.

The critical error is treating cEV as your real-money result. In a tournament, chips have diminishing marginal value, so a +cEV spot can be -$EV near a bubble or pay jump. Always know which currency you are computing: cEV for chip accumulation, Dollar EV ($EV) for the actual money. The gap between them is the risk premium.