Badugi is a draw game where each player is dealt four cards. The objective is to make the lowest four card hand with different suits and different ranks. Ace is low. Straights do not count against the hand. The best hand is A234 all with different suits. Any hand with four different suits is called a 'badugi'.
There are 3 draws in Badugi, and each player can replace any or all of their cards when drawing. There is an initial betting round after the initial deal but before the first draw. After each of the 3 draw rounds there is another betting round. That makes 4 betting rounds in total.
Badugi is played as a limit game without blinds. See the section on Betting Limits for more information on betting limits.