Basically, here's how it works... The live tourney you are in has reached the point where the $25 chips will no longer be used. The tourney manager will come around and color up everyone's chips. For every 4 $25 chips you have, you will receive 1 $100 chip. But likely, many of the players will not have an even $100 worth of $25 chips. Say after coloring up the even amounts, your table has these players with this many $25 chips left...
P1 - 2 chips
P2 - 3 chips
P3 - 0 chips
P4 - 1 chip
P5 - 2 chips
P6 - 0 chips
P7 - 2 chips
P8 - 1 chip
P9 - 1 chip
That leaves 12 $25 chips or $300 remaining. Cards are dealt to each player who had $25 chips left. P1 would get 2 cards, P2 gets 3 cards, P3 gets 0 cards, etc. until all players with chips left get cards. In this case, the 3 highest cards gets one of the remaining $100 chips. However, each player can get only one chip, so if P2 gets 2 aces, P1 gets an ace, and P4 gets a king, each of those 3 players gets a chip. Each poker room has their own way of breaking ties... (suits, first to get the card, etc...)
Clear as mud?
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