I am still confused about the exact implementation of this "select your own max profit" and how it will work.
If you pick 0.25% and I pick 1%, then I make (or lose) 4 times as much as you. Simple as that.
I think this isn't exactly correct. This is how I think it'll work and I would love if Dooglus could let me know if this is correct or not:
If you and I are both invested at (say) 100btc (thus having the same percentage of the bankroll), then:
A) For bets that pay (profit) less than or equal to 0.25% of 100, or 0.25BTC, we both make/lose the same amount
B) For bets that pay (profit) more than 0.25% and less than or equal to 1% of 100, or 0.25BTC, you do not participate, and I do.
C) Bets that pay more than 1%, neither of us participate (if Doog allows investors to choose >1% personal max profit)
NOTE!!!! Many people continually mistake MAX BET (which doesn't exist as a concept on JD*) and MAX PROFIT. STOP MAKING THIS MISTAKE!
Max Profit = the maximum you can profit on one bet.
Example 1: Nakowa bets 210BTC at 49.5% and that pays 210BTC (under the as of now max profit of 210).
Example 2: I'm feeling lucky and bet 2BTC at 1%, which pays 196BTC. (In scenario B above, the person with their max profit set to 0.25% would NOT participate in this bet, neither upside nor downside).
Example 3: SUPER DUPER CRAZY NAKOWA^2 whale shows up and bets 20,580BTC at 98%, which pays 210BTC with 98% probability, and loses 20,580BTC with 2% probability. (this is * from above, there is an implicit "max bet" which is defined the maximum bet at 98% such that it pays the max profit.)
Doog, could you confirm this is correct please?
EDIT: Doog did respond and the A/B/C scenario I wrote above is wrong, though it's not what Peter R wrote in the quote above it. My note about people not confusing max profit with max bet still stands, though
