Hello Ethan, unless I'm misunderstanding something, I think investors are not getting a pretty good deal when investing in Yolodice.
It says that profits are taxes 35% in both of the following cases:
- On Sunday evening (on any profit accrued)
- When the investment is closed.
So let's say my investment generates a profit of 0.5BTC for the week and leave the investment open. 0.175BTC will be taken as tax on Sunday evening leaving me with a remaining profit of 0.325BTC.
Now lets say next week some wagerers get lucky and my investment loses 0.5BTC. My investment is now in the red -0.175BTC. I don't get taxed. Fine.
The following week the investment ends up 0.5BTC in the green. My investment is now worth (-0.175 + 0.5 = 0.325BTC) 0.325 again, however now since I made 0.325, that get's taxed 35% leaving me with 0.21125.
So what actually happened was (week 1) +0.5BTC (week 2) 0 BTC (week 3) +0.5BTC
And my investment becomes (week 1) 0.325BTC (week 2) -0.175 BTC (week 3) 0.21125.
The owner takes 57% of the profits making it impossible for me to profit.
Ethan, you say taxes are only taken from amounts not already taxed, but what if the amount taxed is lost and then remade, do you tax it again?
Please clarify that above, I really don't know why you need to take tax off every week. It would make much more sense to me to take the tax off ONLY when the investment is closed..
When commission is taken on the investment, you can see if you click on the investment with the rest of the details what profit the commission was taken up to. So in your example, when you get commission taken the first time, your investment will have a label on it saying that commission was taken up to 0.325 profit. Then, when you lose 0.5 BTC and then get 0.5 BTC back in your example, you still end up at 0.325 BTC net profit, and no more commission is taken because you have not passed your "marker" for commission which is still at that point.
Say then your investment grows another 0.5 BTC up to 0.825 BTC profit and then Sunday rolls around and commission is taken again, it would only be taken on the part that has not yet been commissioned, the profit between 0.325 and 0.825 BTC. 0.175 BTC would be taken in commission and your investment would then be 0.65 BTC and the "marker" for commission would then also move up to 0.65 BTC.
You can see that when you've made 1 BTC net profit before commission, it's still 35% even if your investment falls in the meantime.