Quote from: BlockChainLottery on December 20, 2016, 04:40:49 PM

I checked it with real bets:
bet 1- won
house edge=1%
wager=10bits
profit=10bits
investor profit=-10.07bits
app dev profit=0.05bits

calculated: mp profit=10.07-10-0.05=0.02bits

bet 2- lost
house edge=1%
wager=10bits
profit=-10bits
investor profit=9.93bits
app dev profit=0.05bits

calculated: mp profit=10-9.93-0.05=0.02bits

So what does this mean? App dev get's 0.5% of the wagered amount, MoneyPot gets 0.02% of the wagered amount, and investors lose 100.7% of the wagered amount with a winning bet, and get 99.3% of the wagered amount with a losing bet.
But the chance of winning of the one betting is only 49.5%, so investors win on average:
0.993*0.505-1.007*0.495=0.003 => 0.3%

Great explanation there at the bottom, thanks