Makeup
The purpose of makeup is to ensure that over the long run in staking arrangements, the player's profit and the backer's profit are equal.
How Makeup Works
If you bust a stake, or return a stake with less than the full starting bankroll, you will typically owe makeup to that backer. This makeup will be paid back when you profit on future stakes for the same backer.
Makeup is treated as added stakeback before any profit chop is made.
Example: Assume Tom is staking George to run some MTT series at $100 apiece. George busts the first series and owes Tom $100 in makeup. He hits a big score in the second series and ends up with a stake bankroll of $350. HE owes Tom $100 for stakeback, $100 for makeup, and then does a profit chop on the remaining $150, for a total of $275. Tom has made a total of $75 profit from staking George, and George has made a total of $75 profit as well.
Sat Oct 18, 2014 1:05 am
