Question about moneypot - page 3. | Bitcointalksearch.org

lclclc223

full member

Activity: 174

Merit: 100

Quote from: Dogedigital on April 17, 2016, 07:43:53 AM

Quote from: lclclc223 on April 17, 2016, 01:12:01 AM

Sorry I'm sounding like such a newb, but what is commission?

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What commissions do you charge?
MoneyPot charges 0.2% commission on all wagered bets. Furthermore to this, all apps are paid a commission of up to 50% of the house edge. So this means if someone bets 1 BTC with a house edge of 1%, from the investors perspective it is much more similiar to a 0.5% house edge bet, as the investors give the app half the house edge (in this case 0.005 BTC) in commission.

However, we do respect the kelly and will never put investors at more risk than that.

Commission is the house fee taken to pay for servers, hosting, work and services to maintain the website.

It is 0.2% of the house edge.

For example, if you're playing at BetterBets at a 1% House Edge and bet 1 Bitcoin: 1 Bitcoin (bet) * .01 (house edge) * 0.2 (commission) = 0.002 Bitcoin (Total Comission taken).

But didn't it say they do 50%? Also, so the higher the commission the less the investors get?

Dogedigital

legendary

Activity: 1330

Merit: 1000

Quote from: lclclc223 on April 17, 2016, 01:12:01 AM

Sorry I'm sounding like such a newb, but what is commission?

Quote

What commissions do you charge?
MoneyPot charges 0.2% commission on all wagered bets. Furthermore to this, all apps are paid a commission of up to 50% of the house edge. So this means if someone bets 1 BTC with a house edge of 1%, from the investors perspective it is much more similiar to a 0.5% house edge bet, as the investors give the app half the house edge (in this case 0.005 BTC) in commission.

However, we do respect the kelly and will never put investors at more risk than that.

Commission is the house fee taken to pay for servers, hosting, work and services to maintain the website.

It is 20% of the house edge.

For example, if you're playing at BetterBets at a 1% House Edge and bet 1 Bitcoin: 1 Bitcoin (bet) * .01 (house edge) * 0.2 (commission) = 0.002 Bitcoin (Total Comission taken).

lclclc223

full member

Activity: 174

Merit: 100

Sorry I'm sounding like such a newb, but what is commission?

Quote

What commissions do you charge?
MoneyPot charges 0.2% commission on all wagered bets. Furthermore to this, all apps are paid a commission of up to 50% of the house edge. So this means if someone bets 1 BTC with a house edge of 1%, from the investors perspective it is much more similiar to a 0.5% house edge bet, as the investors give the app half the house edge (in this case 0.005 BTC) in comission.

However, we do respect the kelly and will never put investors at more risk than that.

lclclc223

full member

Activity: 174

Merit: 100

So in other words, the poor guy took the money out of the bankroll just to put it right back in.

RHavar

legendary

Activity: 1463

Merit: 1886

Quote from: lclclc223 on April 16, 2016, 10:11:55 PM

Something doesn't quote add up:

Quote from: lclclc223 on April 15, 2016, 11:00:58 PM

Site Bankroll: 389,800,231.98 bits
Wagered against bankroll: 14,589,464,076.97 bits
Investor Profit: 87,654,258.75 bits
Your stake: < 0.01 %
Your amount: 100.86 bits

Today:
Site Bankroll: 389,934,103.16 bits
Wagered against bankroll: 14,772,889,421.86 bits
Investor Profit: 99,064,021.05 bits
Your stake: < 0.01 %
Your amount: 103.90 bits

So collectively the gamblers lost 99,064,021.05-87,654,258.75=11,409,762.30 bits, which is a 13.0% increase. The site bankroll barely budged, making only a 0.03% increase, meaning the investors collectively divested 11,275,891.12 bits. Ergo, gamblers lost a ton of money, the other investors divested a lot of money, and I only get a 3% increase? Note: I did not divest any of the 100.86 bits that were already in there. So either moneypot is faulty or the formulas are more complicated than that (unless I'm wrong)...

It's probably the last one Grin

Let's illustrative purposes lets the bankroll was 100 BTC, and you own 1% of it (1 BTC), and the investor profit has been 0.1 BTC. Now let's say a gambler comes, and loses 1 BTC.

That means the investor profit has gone up from 0.1 BTC -> 1 BTC (1000%)! How much would you expect to make?

Well you don't make 1000% of your money, that's for sure, because if so you would've made 10 BTC (that's more than the gambler lost!). But rather, your profit would be { your stake} * { increase in bankroll } or 0.01 BTC (You own 1% of the bankroll, so take 1% of the loses and gains).

So back to the moneypot example, the change in investor profit is actually meaningless. What you care about is a gambler lost ~11.4 BTC on a ~390 BTC bankroll which means the bankroll should have increased by ~2.92%, and thus your stake should be worth the same amount more. Which matches your observation.

BTW a very probable reason the amount divested almost exactly matches the amount lost, is because the person who divested the money is the same person who lost it Grin

(Disclaimer: I'm not an investor and haven't been following MP, I'm just going purely based on the info in your post)

lclclc223

full member

Activity: 174

Merit: 100

Something doesn't quote add up:

Quote from: lclclc223 on April 15, 2016, 11:00:58 PM

Site Bankroll: 389,800,231.98 bits
Wagered against bankroll: 14,589,464,076.97 bits
Investor Profit: 87,654,258.75 bits
Your stake: < 0.01 %
Your amount: 100.86 bits

Today:
Site Bankroll: 389,934,103.16 bits
Wagered against bankroll: 14,772,889,421.86 bits
Investor Profit: 99,064,021.05 bits
Your stake: < 0.01 %
Your amount: 103.90 bits

So collectively the gamblers lost 99,064,021.05-87,654,258.75=11,409,762.30 bits, which is a 13.0% increase. The site bankroll barely budged, making only a 0.03% increase, meaning the investors collectively divested 11,275,891.12 bits. Ergo, gamblers lost a ton of money, the other investors divested a lot of money, and I only get a 3% increase? Note: I did not divest any of the 100.86 bits that were already in there. So either moneypot is faulty or the formulas are more complicated than that (unless I'm wrong)...

lclclc223

full member

Activity: 174

Merit: 100

Quote from: RHavar on April 15, 2016, 11:16:54 PM

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Finally, and this is where I am the most confused, what is the formula for "investor profit"? Also, is it proportional to "your amount", and does it change when invesstors invest or divest?

Investor profit is just how much gamblers have lost in total.

I'm guessing that's minus what the gamblers have won? Also by investors is it moneypot and investors or just investors?

So I guess my question is which one is the best indicator of how much I would make if I hypothetically were to invest more money withough actually investing

RHavar

legendary

Activity: 1463

Merit: 1886

Quote from: lclclc223 on April 15, 2016, 11:00:58 PM

Sometimes I see the "site bankroll" fluctuate. Is that just a result of other investors investing or divesting and a combination of gamblers winning and losing?

When a gambler loses, your stake stays the same but the bankroll goes up (aka you make money). When a gambler wins, your stake stays the same but the bankroll goes down (aka you lose money). When someone invests, the bankroll goes up but your stake decreases (aka you don't win or lose). When someone divest, the bankroll goes down, but your stake increases (aka you don't win or lose).

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Also, how much of that belongs to moneypot and how much belongs to investors?

Good question, something for them to disclose

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Secondly, I assume "wagered against bankroll" is the total amount of money gambled, so it will always increase?

yup

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Finally, and this is where I am the most confused, what is the formula for "investor profit"? Also, is it proportional to "your amount", and does it change when invesstors invest or divest?

Investor profit is just how much gamblers have lost in total.

lclclc223

full member

Activity: 174

Merit: 100

On the investment page there are a few stats:

Site Bankroll: 389,800,231.98 bits
Wagered against bankroll: 14,589,464,076.97 bits
Investor Profit: 87,654,258.75 bits
Your stake: < 0.01 %
Your amount: 100.86 bits

I am confused on what the formulas are for the first three? Sometimes I see the "site bankroll" fluctuate. Is that just a result of other investors investing or divesting and a combination of gamblers winning and losing? Also, how much of that belongs to moneypot and how much belongs to investors? Secondly, I assume "wagered against bankroll" is the total amount of money gambled, so it will always increase? Finally, and this is where I am the most confused, what is the formula for "investor profit"? Also, is it proportional to "your amount", and does it change when invesstors invest or divest?

Thanks in advance to all of you taking the time to respond.

Topic: Question about moneypot - page 3. (Read 2222 times)