I read somewhere that the house makes some bets of its own too. How does that work? Is the 10% taken only on the first few bets, to cover the house bets? Or on all bets? Basically the description seems incomplete. We need details!
We put initial bets on each side, with fixed 2X multiplier, thus when one of the sides win, we get our initial bets back.
Since many of you misunderstand the difference between the concept of house edge and wager commission, I’ll take this opportunity and try to explain this in more detail.
This game house edge is zero but each wager is taxed with commission. The commission we take cannot be simply translated into the corresponding house edge similar to the one we’ve got in dice gambling.
In the game of dice, the odds of the outcome are slightly biased towards the house and terms of payoffs are linear to the probability of outcome. In slopes, however, the odds of the outcome are strictly 50/50 (i.e. there is no house edge bias involved when the slopes are generated) and terms of payoffs are flexible. Yet, we have to charge commission to facilitate variable payouts at expense of the losing counterparty … So these are two different things.
I still don't understand.
Maybe you could walk us through an example, showing the first 2 house bets, and 3 player bets (up, down, up). For each of the 5 bets show the stake, the payout multiplier, how it is calculated, any "commission" that is charged, and why.
For example:
bet 1: house bet 1 BTC on "up" at 2x.
bet 2: house bet 1 BTC on "down" at 2x. this bet effectively 'cancels' bet 1. house risk is exactly zero.
bet 3: player A bets 2 BTC on "up" - this is where I get stuck. nobody bet on "down" that didn't have their bet matched already. so how can you offer any payout at all? even if the payout is only 1.1x, the house is still risking 0.2 BTC if the bet wins