Become The Banker | Earn Passive Income
✅ Wager as player or become the house? Now you can pick your side.
✅ Invest in the bankroll and earn passive income proportional to your contribution.
✅ Investors are free to open and close investment positions at any time
How does investing work?
To account for future growth and be able to take on more wagers, CryptoDice.io is opening up the bankroll for public investment. Not only players can continue to play on the platform, everyone can now choose to invest and own part of the house.
Investors are able to supply funds for the bankroll in exchange for shares proportional to their contribution. If a player wins, the funds move from the bankroll to the player. If a player loses, the funds move from the player to the bankroll. The profits are then split to each investors according to their share, and the same also applies for loses..
Investor can open and close investment positions at any time. The moment an investment is opened, the initial investment amount is exchanged for the share in site bankroll with percentage equal to the ratio of contributed funds to the bankroll fund. When an investment is closed, the share is exchanged back for the initial investments plus the profits accumulated during the period of investment.How do investments earn profit?
Profit from the dice game is the main source of investors' profit. The site has 1% house edge over the players, so the expected site profit is 1% of what the players wager. In other words - over the long term we expect the bankroll to increase while the players play.
Each investment has a share in site bankroll, and when the bankroll increases while players play, the current value of the given investment increases.
Please note although the site has statistical advantage over players and profit is expected in the long term, this is not a guarantee of the profit because expected profit does not take variance into account. Bankroll will increase and decrease in size depending on players winning or losing. However, over the long term it is expected to increase due to house edge.
What is the investment commission?
To fund the site's expenses and marketing events such as contests, commission is taken from the expected profit the site would make, which is based on the amount wagered for each bet. As we are attracting new investors, we are offering a low commission of only 20% for now. This might be increased in future but will be no greater than our competitors', to ensure our commission is competitive.
What this means is that when a player bet 1, the site will take a 20% commission from the expected profit. Since the expected profit for the house is 1% which is 0.01 in this case, the site will take 0.002. The rest of the profit will go to the investors.
The running commission is taken regardless of how much profit the site makes. If the site makes more coins than expected, they all go to investors. If it makes less, the commission is still taken. In the long-term we expect the bankroll should increase and hence investors' profit.
Protection of bankroll amount
To avoid large wager variance that could result in huge winnings, and thus significant loss of bankroll, we are limiting the max profit per bet to less than 1% of the bankroll. This ensures any huge winnings will not affect the bankroll too much, while still attractive enough for players to win huge prizes.
Questions?
If you have any questions related to the investment feature, please post it in this thread. We will strive to answer your concerns.
Note: The investment profit is currently turned off on the site, as we are still at the stage of gaining investors. What this means is your are able to invest or divest, but the wagers will not be counted towards investment profit for now. Once we proceed this stage, we will turn on the investment profit, and any wager from there onwards will be taken into account to the bankroll.
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PS: As investors might have questions or need more info about the new investment feature, we have created this thread specifically for this purpose so that it's easier to gather the questions or info. We don't expect this thread to last forever. We will eventually lock this thread and redirect everyone back to the main ANN thread in the future.
