Hey guys,
Lets say 5 of my friends wanna buy some pieces of me in the upcoming anniversary sunday million..215 buy in..
Im not familiar with staking arrangements and would like some help witht hemath and how it would work.. So how does these arrangements work in general?
I heard something 2:1 ratio, if somebody stakes the full buy in he would get 50% of the winnings.
Can you help me out with some math here for like 5 or more ppl buying pieces?
50% is usually for a longer term staking arrangement with makeup. For a one time shot they usually get between 75% – 85% of the winnings. This makes sense because of the variance tied into a 1 time deal. The longer deal gives the backer more opportunities to recapture their money. In the longer term deal you usually have makeup which means that before you can take any profit you have to clear your past buyins. With a one time deal there is none of this. They give you the money, you take the shot, and there is no further obligation.
The one time deal ratio doesn't change if you have more people. Just break it into smaller pieces. You can say for every 10% of buyin they get 8% of winnings and extrapolate from there.
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