Quote from: Beyn on May 14, 2017, 01:44:50 PM

Thanks for your reply.

I have allready gone trough the FAQ and I still believe that my statement above is right and yours is wrong.

Consider this simple scenario:

EVERYONE invests with 10x leverage.

So if 10% of the site bankroll are lost EVERYONE should loose their whole investment and the bankroll should be 0 by your logic. Yet it will be at 90% because only 10% are lost.. right ?

So effectively it means that if everyone invests with the same leverage then this removes the leverage effect completely.

see what i mean.. ?

Now.. looking at the numbers.. not everyone has invested with 10x leverage but actually 95% of the investors have !

This part "So if 10% of the site bankroll are lost EVERYONE should loose their whole investment and the bankroll should be 0 by your logic. Yet it will be at 90% because only 10% are lost.. right ?" is not correct. The bankroll would not be 0. The bankroll would be 90%, but investor's investments would be 0%.

Let's assume the bankroll is funded entirely by 5 people (which means the house itself has 0 coins of its own), each investing 1 BTC at 10x (so 10 "theoretical" BTC each). This means the ACTUAL bankroll is 5 coins, but the leveraged bankroll is 50 coins. Someone comes to bet on the site and wins 0.50 BTC (10% of the bankroll), that means each of the 5 investors have lost 100% of their investments, meaning the effective actual bankroll would now be 4.5 BTC (calculated after the players' profits) rather than the 0 it was previously (since the house had no coins of its own). Each investor invested the same amount, and lost the same amount at 10x leverage.

Now let's flip the logic, same scenario: 5 players invest 1 BTC each at 10x, and some lucky player comes along and loses 0.50 BTC, again 10% of the current bankroll (before adding the profit). The actual site bankroll now looks to be 5.5 BTC, grown by 10%, and each of the original investors' investments has grown proportionally, including the 10x leverage. So normally their 1 BTC would have grown to be 1.1 BTC, but because they invested at 10x, their investment is now 2 BTC instead of 1 BTC.

Each player profited the exact same amount at 10x leverage (100% profit in this scenario), because your investment gains are based on the effective bankroll's gains, not the leveraged bankroll's gains. If the investors profits were based on the leveraged bankroll, you would be right. But it's based on the actual physical bankroll.

Maybe that's where you're confused? It doesn't matter what everyone else has their investments leveraged at, because the profit from your investment are proportional to the percent of effective bankroll gains, multiplied by your leverage.

Does that make more sense now? If not, I'm more than happy to ask ethan_nx to come in here and try to explain when he can.

EDIT: Wanted to add a line that might help you understand. The leveraged bankroll is just a number. Leveraging as a process itself does not affect other players or their investments in any way, only the multiplication of profits/losses you experience personally.