Fuzzy-trace theory assumes that decision-makers process qualitative “gist” representations and quantitative “verbatim” representations in parallel. Here, we develop a formal model of fuzzy-trace theory that explains both processes. The model also integrates effects of individual differences in numeracy, metacognitive monitoring and editing, and sensation seeking. Parameters of the model varied in theoretically meaningful ways with differences in numeracy, monitoring, and sensation seeking, accounting for risk preferences at multiple levels. Relations to current theories and potential extensions are discussed.