My only knowledge about cashgame staking is that the bankroll (BR) is complety provided by the baker - stakee and baker share profits 50/50 with markup in general. How would you divide profits x/y if the bankroll is shared to 50% by the stakee and 50% by the baker? I would assume that something like 75/25 stakee/baker is reasonable in this case, isn't it?

I think "shared" is the wrong word here (or bankroll is the wrong target of that word) as that would imply the horse is not the only player playing. Here it is not the bankroll that is shared but the investment. Anyway, if I understand you correctly, yes the horse should get 75% of the winnings if he also contributes 50% to the bankroll that he and he alone is playing on.

ok, thank you. one more thing. markup means that in case the bankroll drops under its initial value, the horse has to grind until the intial investment (bankroll) is restored or the pre-defined staking period is reached?

yes basically. however, a few points.


usually with a mark up deal there is no predefined staking period. either party can end the deal if there is no makeup, but the horse can't end the deal if there is makeup. only the backer can.



markup means that once markup is accumulated, any future wins must first go to paying back the markup before they can start to accumulate towards a chop.

markup can accumulate even after the bankroll has grown well beyond its initial value.

I do not fully understand this sentence. Can you give an example scenario for this? My guess is: If the bankroll drops under its initial value, the baker has the chance to fill it up again, however, if this is the case, the mark up still exists and has to be paid before profits are split again.

He means makeup, not markup. And dont do staking with a makeup. Most of the time the horse gets so far stuck in makeup they can never dig out of the hole meaning they never see any cash of their own even if they are starting to win. Unless you have an early score youre always gonna be chasing that makeup number. Its best to just sell pieces of yourself to a series of tourneys or cash games. No makeup owed.

If even investment, i think the best way to do it is to provide an incentive based bonus tier system, and share the profit 50/50(preferably sparingly at first to grow to milestones). For example a backer and horse may provide a starting roll of $1000(500 each), to be used in 100-200 dollar increments during the early phase, then if the roll grows to $2500 a predetermined bonus may be issued. 250 bucks seems appropriate to me, or thereabouts. Then if roll goes to 4k, 400 dollar bonus, etc.

Then if you squander in breakeven doldrums, the backer isnt left wondering where the results are. Or if you run really shitty its an easy deal to cut off at any time(this is crucial condition for long term deal imo). Discretion is the better part of valor. For stake horses sometimes this means sucking it up and admitting that refunding unused buyins is best, and this part includes behaving admirably even when others may get heated.