He profited $1673.

I returned the $1200 to him shortly after I got the 20k loan.

6,

Then why did he get $1673 and you $0?

6bme did a $1200 cash out at one point which put him back at even makeup. He then proceeded to lose a bunch which meant he was in make up, roughly 1.2k. Essentially he would be grinding the 1/3 stake and paying me everything he wins until he is out of makeup. Say he wins at $20 an hour he needs 60 hours to climb out of makeup.

- if he won 1.2k he would be at a net profit of 2900
- our split would be 1200-1700 due to our arrangement (refer to previous post explaining how that works).
- if he quits the stake and doesn’t pay me the makeup I’m at a loss if I only receive $473. I have no incentive for him to quit the makeup in this scenario.

If he grinds 60 hours at 2/5, at a $30/hr win rate, he’s up $1800 it makes more sense for him to buy out of the stake.

We stipulated prior beginning the stake that if he was ever in makeup and wanted to quit to play poker on his own, he owes me the makeup in full. This is standard terms of a staking arrangement.

So the agreement was: he would get the first $500 and I'd get 50% after that, which would mean I would normally get $586.50, but the makeup reset once I took $1200 out. Since the new breakeven point was at $2900 profit, then by only making $1673 profit, I was effectively "down" $1227. So I had to return $1227 after I quit the stake. Which means I would've made a net loss of $27 overall, if not for DLuo letting me off the hook and only paying $1200 back instead.

This.

Well technically we were still adding/changing rules a little bit for the first few sessions because we didn't have everything clarified at first, but yeah the end result is the same.

6,

But you said you had already paid him back the $1200 you took out.

Yeah I used the 20k loan money to pay it back.

6,

So you’re saying:

1) you won $1673 on the stake.
2) you took $1200 cashout.
3) you paid D back the $1200 cashout
4) D got $1673 and you got $0

Is that correct?

This is how I understand it which means I don't understand.

Broken,

But you understand what I’m asking, right?

Yeah

Looks like its stupid time again.

You guys are correct, and I can see why this is confusing. Essentially 6b is paying a penalty for breaking a contract, at a fee of $1200. If he does not pay this fee then I am at a loss, because ideally I would keep him on stake until he at least climbs out of makeup.

If you think of it as when 6b is in makeup, everything he wins goes directly to me. It helps make sense of the situation.

Yeah exactly this.

If you want a more detailed explanation as to why it worked out this way, then we explained it above.

=[[[[[[[[[[[[[[[[[[[[

I got it.

It would probably be simpler to say you won $2900 and chopped it up. $1200 to you and $1700 to DLuo.

The stake was then reset to zero and you lost $1200 putting you in make up which you then decided to buy out of.

This seems essentially what happened even though the physical money may not have changed hands in precisely that order.

Dog,

Except he said he had already returned the $1200 from the first chopping up in your scenario, so it seems if that’s true he shouldn’t have been in makeup. But whatever, it’s their deal.

Edit: to me that would mean...

Stake is +2900
He takes a loan of 1200 from stake
Stake is +1700
He repays the 1200 loan from stake (using a high interest loan)
Stake is +2900
He loses 1200
Stake is +1700
He ends stake
Per agreement, D gets $500, then they split remaining $1200 for $600 to 6 and $1100 total to D.

Yep correct

so should it be that 6 bet me should pay 50% of the make up? i don't think it should matter that he cashed out some profit and reset the stake to 0

Jordan,

It’s actually significant if 6 paid back the $1200 he initially took out while the stake was still ongoing, which according to him he did. If that’s correct, then he never actually cashed anything out and there was no reset of the stake. He just ended it with the stake up $1700.

This would've happened if DLuo quit me... but since I quit him, the "punishment" was that I had to pay 100% makeup.

According to standard backing rules, yeah, this would be the case. But we agreed to some pretty non-standard rules, which admittedly were quite harsh on me, but it is what it is. No one else would stake me, so I took what I could get.

Let's look at it this way:

6bme cashes out for $1200 which is his share of the stake. I cash out $1700 which is my portion of the stake. We now enter a new staking arrangement with a clean slate.

6b goes on to lose money, putting him in makeup, he loses $1200. If he were to quit the stake then how much money does he owe me?

6,

If you had already paid back the $1200 you took out earlier, and the stake was +$1700, why were you in makeup?

He didn't pay back the $1200 until after we stopped our stake. $1200 was paid to clear our makeup.

6,


Jfc