Live staking board: Ground rules and disclaimer

[TightEnd]

After much consideration we have decided to introduce two new child boards

- Online tournament Staking (child board of Internet Poker)

- Live tournament staking (child board of Live Poker)

There will of course be some basic ground-rules for members to observe.

- You may offer to stake players, or ask for staking, but only if you have a minimum of 300 forum posts and have been a member of the forum for at least three months.

- Posts should detail in full the proposal to be discussed, rates and amounts available to produce transparency in all instances.

- Auction PM bids are not permissible, as it makes the process too vulnerable to ramping/ficticious bids

- Begging posts will be removed

- blonde Poker will not become involved in disputes as to the stake itself under any circumstances but will moderate public boards in line with its guidelines for flaming etc.

- This will be non-commercial for blonde Poker.

[TightEnd]

Please note the addition to the guidelines in bold above

[TightEnd]

In a small change to further enhance members' comfort with this service, members with less than 300 posts are now unable to post on the staking boards as a result of an admin permissioning change where you now need 300 not 250 posts to be a full member

[TightEnd]

Staking explained, by Evilpie

I'll have a crack at explaining it for you Dreenie:

One way of staking is to buy a set amount yourself and sell the rest to backers. You pay for a certain amount of the entry yourself and then sell the rest at a markup of your choosing. Personally I don't mark up but that is entirely up to you to decide.

Say you play a £500 comp and sell half of your action:

You pay £250 yourself and get the rest from stakers. If you sell at even money 1:1 you just get the other £250 off them.

If you sell at 1.1:1 you charge them £1.10 for every £1 they buy. The £250 you sell will therefore cost stakers £275 total. This obviously means that there's only £225 left to pay so you save yourself £25. The more you mark up the less you pay yourself.



When you have 100% staking for a set amount of equity you can work out the effective mark up as follows:

Say the comp is £1000

You sell 100% for 70% equity. This means that any winnings go 70% to the staker and 30% to you.

This means that effectively they are only buying 70% of you which is £700 worth but it's costing them £1000

If you divide 1000 by 700 this will show you the mark up, in this case 1.43

To work out the mark up of set equity you just have to invert the actual percentage expressed as a decimal if that makes sense?

50% = 0.5 = 2:1
60% = 0.6 = 1.67:1
70% = 0.7 = 1.43:1
80% = 0.8 = 1.25:1
90% = 0.9 = 1.11:1

Other things alter this such as offering stake back first before splitting profits and obviously being on a long term make up deal makes a huge difference.

One off stakes can be worked out as above though and are generally very bad for the staker and require a lot of luck to work out well.



Generally speaking if you put some of the money up yourself and don't charge a markup you have a good chance of selling. You are taking a risk yourself so backers know you'll be trying your best.

If you ask for 100% of the money you are taking on no risk at all yourself so it becomes harder to sell unless you are extremely good or are well liked and can sell to friends.

If you ask for 100% staking for 50% equity you're very unlikely to sell except to friends. The odd $10 comp would be fair enough but a biggy would be very poor value for the staker. A £1000 comp for example the staker is effectively paying £1000 to put you in to a comp where the prizes they stand to win are equivalent to a £500 comp. Obviously when staking a friend value isn't priority number one so it's still possible.

Hope that helps a bit.

[TightEnd]

Please note the addition to the guidelines

- Auction PM bids are not permissible, as it makes the process too vulnerable to ramping/ficticious bids

Whilst are tricky to enforce, serial offenders can see their proposals moved to off the public forum if required.


Please remember

- not only can you not ask for staking if you have less than 300 posts but also you can't offer staking with less than 300, whether on other threads or by PM

This is designed to minimise risk to the potential stakee of not receiving funds. We recognise that in some cases people with under 300 posts will be known to the stakee but this clause has to be set for all rather than spend our time considering on a case by case basis