to try it out I just paid .5 btc in dilute fees, total onsite and offsite bankroll (and my bankroll) increased by my investment amount excluding the fees (exactly till .001 btc correct), where did my fees go if they didn't go to the investors?
Since you PM'd me this (although the correct person would've been "devans"), and posted it here -- I'll just answer it here in case it's useful to anyone else =)
So let's define some symbols:
A = onsite amount you are investing
B = offsite amount you are investing
C = dilution fee
So your question is "Why did the bankroll go up by A+B and not A+B+C?" and the answer to that is simple: your account balance was only decreased by A (and *not* A+C).
In other words, A is before fees, and not after fees. So the dilution fee did indeed go into the bankroll (some of which would've flowed back to you)