Quote from: misterbigg on August 20, 2012, 10:29:46 PM

Quote from: evoorhees on August 20, 2012, 10:25:26 PM

Quote from: misterbigg on August 20, 2012, 10:21:18 PM

Where can we audit the BTC cash reserves?

This thread is a good place to start - people have been auditing SatoshiDICE since it started

https://bitcointalk.org/index.php?topic=80312.0

But where's the running balance? Nothing in the prospectus talks about the size of the cash reserve, or discusses the probability that SatoshiDICE will "go bust" (which is unlikely but still a nonzero chance).

If the dividends are paid out every month what happens to the cash reserves? How often are the betting limits reduced on account of liquidity? What's the long term plan for raising the betting limits?

A lot of unanswered questions here! I think people are getting caught up in the glamour and hype and are forgetting basic due dilligence!!!!

1) Running balance of the wallet is not public (though I could make it such). It's held in a handful of online (hot) wallets and offline cold storage. The balance is thus the sum of these accounts... as of this second, it stands at 7,302 BTC

2) SatoshiDICE cannot go bust. It's algorithms change the max bet sizes in real time so that in a world where the site lost every bet forever, the cash reserves just fall toward zero asymptotically. It can lose all the money in cash reserves, but never go into debt.

3) Dividends paid out come from new profits, and don't reduce cash reserve below the level it was at in the prior month. Betting limits rise and fall constantly based on statistical variance. Betting limits are very high right now, and I do not intend to raise them further - though if I wished to, I can at any time put in more capital for this purpose.

4) Are there a lot of unanswered questions? I think I've been quite good about answering them all, no? And yes, due diligence is extremely important. I'm hoping people at least read the full prospectus before posting here, because lots of questions are likely answered in that document.