Post
Topic
Board Speculation
Re: Review of S.DICE
by
Deprived
on 17/01/2013, 22:33:07 UTC
In other words, if you do the probability (some other math whiz can solve this if they feel particularly magnanimous) that SD will exhaust its RE's due to bad luck in the dice game and cease being a going concern then it reveals that solvency risk just plummeted massively causing an increase in the expected discounted future cash flows.

Think that's largely irrelevant anyway - as if they have some bad luck then the max size of bets would just get decreased.  So the real Risk of Ruin is (and always has) been very near zero.

Larger cash reserves DOEs, however, allow increasing max bets OR maintaining current limits through a longer run of bad luck (both of which tend to increase cash-flow and hence profit) - but that has nothing like the impact it would have had if the max bets had been fixed in stone and there were a real risk of ruin.