Quote:
Originally Posted by KurtSF
I understand this for cash games. What is the norm for STTs and MTTs? Same situation, backer takes 100% losses.
a staking deal usually works like this.
A backer puts up the buy ins or BR for a horse to play.
The horse plays using the backers money.
Profits are split according to predetermined %'s.
If the horse looses the backer looses the money he used to stake the horse.(this is why not many loosing players get stakes).
If you were to arrange a different type of aggrement such as a stake with cake then the backer would not loose all his money. For example if you make a deal with cake then that means that if your horse looses then the money lost in your stake carries over and counts as part of the stakeback in future stakes.
ie, you stake me $55 to play a $55 MTT. I dont cash but the deal had cake. You think i was just unlucky and played well so you stake me for another $55 MTT, this time i come 37th for $368. We agreed to a 60/40 split in you favour so I send you back your $55 + cake(the $55 from the first MTT) = $110+ 60% of the remaining profits and keep the rest of the profits.
Alternatively you can make a deal where you only put up a % of the funds for the horse to play but the profit margins would need to be adjusted accordinly.
ie, a horse wants a stake of $1000 but only has $200 so would need another $800 to be able to play $22 SNGs. You decide to put up the $800 which would mean you are putting up 80% of the BR which entitles you to only(we assume 50/50 split) 40% of the profits, half of the % of the BR you put up, and similarly you only take 40% of the losses. So say that the $1000 drops to $400 then you would get your 80% of that back, $340 and the horse would only get $60 back because his risjk was less to start with.