Poker Forum > Staker Exchange
APAT Staking Exchange - Discussion
mal666:
Yeah the 40% is raised from the backers in that example.
Swinebag:
stakeback/makeup in staking requests
This has been mentioned in a few staking requests and I fancy posting something on this.
Firstly, for the grandmothers, a lesson on how to suck eggs
A stake request that offers stakeback is one where the staker gets their money back for the stake before profits are shared out.
(names are made up to protect the innocent)
e.g.1 Ger wants staking into the WSOP main event ($10K buyin) with a 30/70 cut in favour of the backer (he is a fish!!) with no stakeback. Scouse decides he"s having that and ships Ger the $10K. Ger runs like a god for 3 days and makes the money before getting "coolered" with A5 on 58T board against villains 88. He min cashes for $20K. He ships 70% of this to Scouse who is ecstatic at his $14K return. He made $4K, while Ger walks off with $6K having invested only his time and skill.
e.g.2 George is staked into the WSOP Main event with a 30/70 cut in favour of the backer. He"s a great player but only ever seems to "min cash" in live donkaments these days, so he offers stakeback. Before (insert blonde pro) can say "rest", the BCPC consortium snap it up costing them $10K. George runs normal, bursts the bubble then goes out the very next hand for a $20K min cash. He pays the BCPC their $10K back plus 70% of the $10K profit ($7K) meaning the BCPC have made 7K from their 10K sweat, whilst george makes 3K for his time and effort and zero cash investment.
The second example is considered a much fairer staking arrangement as the staker is investing with no guarantee of a return but ends up with more than the player when he cashes. If both players do a bink and win $1mill+ then in relative terms, the returns for both examples will roughly be the same.
This is an example of where the horse is not putting any of their own money up. These deals should always be made with stakeback.
A lot of the staking deals so far on this board are examples where the horse has actually put up a fair bit of the money themselves and are selling percentages. In these examples the risk is shared equally between the backer and the horse so there is little need for stakeback to be included here.
Chipaccrual:
Yep, what he said.
Fantastic post Rob.
thinsy147:
Nice post Rob.
I think I"ve seen that George bloke on the telly....
I think I"ve seen that Ger bloke.... Well.... At the bar!
;)
SirPercival:
Excellent post Rob. Now can you do one for make-up please ;D
Des/Tighty - Can I suggest we place this, or similar example in the sticky threads.
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