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Exactly. The "luck fund" of an FPPS pool doesn't necessarily exist at all, but the promise of stable payouts regardless of the pool's luck is still there.
This is probably one of the reasons why in recent years so many FPPS pools have become AntPool proxies.
https://mainnet.observer/charts/mining-pools-centralization-index-with-proxy-pools/
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He should probably call it insurance instead of luck fund.