I think this is the best forum for my question(s). I did not see a simple answer for this topic when I searched the forums. If this is the incorrect venue, please move. And I apologize if there is already an answer(s).
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A friend is planning to play in a tournament (in a few weeks) with a buy-in cost of $350.
He is suggesting that I pay $175 for 40%. That's paying for half of the cost for less than half of the (possible) return.
Is that typical of a staking agreement?
I presume that he means 40% of the profit. Or perhaps it's 40% of whatever he walks with at the end of the tournament. I shall clarify.
I can see reasons for not having the percentage staked equal the percentage return.
The player has to do the work. The player has to pay associated costs with being at the tourney.
But the backer has to take a chance of a complete loss. And the backer does not get to play.
Any thoughts about this offer?
Thank you for your feedback.