Can somebody explain to me how profit and losses sharing will works here?
Case one - player wins 1 BTC from any moneypot app in single bet.
What I know is -
40% to app owners ( 40% of the house edge) equals to - 0.004 BTC
10% to Mp ( 10% of the house edge) equals to - 0.001 BTC
Investors need to pay - 1BTC+ 0.004+0.001 = 1.005BTC in total will disappear from the investors account.
Case two - player losses 1 BTC in any moneypot app in single bet.
What I know is -
40% to app owners ( 40% of the house edge) equals to - 0.004 BTC
10% to Mp ( 10% of the house edge) equals to - 0.001 BTC
40% to investors - ( 40% of the house edge) equals to - 0.004 BTC
All together is 0.009 BTC
If we deduct this 0.009 BTC from 1 BTC = 0.991 BTC
Please explain to me who will take this 0.991 BTC and how it will be distributed
I know my understanding is not correct. Thanks
40% of the house edge goes to app owners
10% of the house edge goes to MP
so 50% of the house edge is going to the investors
of the profit investors make from their 50% of the house edge, app owners and MP each get 10%; that represents a further 5% of the house edge for each
so the investors end up getting 40% of the house edge
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For your specific examples:
when the player wins a 1 BTC bet (at 2x) the app gets 0.004, MP gets 0.001, and the investors pay 1.005
when the player loses a 1 BTC bet the app gets 0.004, MP gets 0.001, and the investors get 0.995
but then, at the end of the week, the investors pay 20% of their net profit: 10% to the apps, and 10% to MP.
So suppose there were 1000 bets in the week. All of them were for 1 BTC at 2x, with a 49.5% chance of winning. A house edge of 1%.
Suppose 495 of them won and 505 of them lost. That's the expected result.
On each of the 495 winning bets the investors pay out 1.005; they pay a total of 1.005 * 495 = 497.475
On each of the 505 losing bets the investors earn 0.995; they earn a total of 0.995 * 505 = 502.475
Their net profit is 502.475 - 497.475 = 5 on a total amount wagered of 1000. That's 50% of the house edge.
At the end of the week they pay 10% of their profit to the apps, and 10% to MP; that's 0.5 BTC to each.
They are left with a profit of 4. That's 40% of the house edge.
Get it now?
It is a good explanation, and everyone can easily understand this simple maths.
Just want to get more understanding on last part.
If that is applicable, then you should also consider implementing MP and App owners need to pay investors 10% each, if Investor loses money for any particular week then I think it is a balanced formula otherwise it is biased to help only MP and App owners.
Investors are always losers in this investment and it is just my feeling because I too lost my money in this investment and if you come up with better profit sharing then I would like to re-enter again.
I hope everyone will support for this logic if you think it without biased mindset.