Wednesday, January 12, 2011

staking terms and conditions

The following are the terms and conditions for the stake. I am open to making changes to these as long as it's a win-win situation for both parties for the long term:

1) 50/50 sharing of all winnings calculated at the end of the stake period as:
- end of period stake amount - initial stake amount = winnings
- winnings divided by 2 = 50% share
- half goes to backer, the other half stays in the bankroll where i have the option to withdraw, transfer or keep in the bankroll.

2) 50/50 sharing of all rakeback (if stake was made on my full tilt poker account), bonus, and promotions;

3) stake period is the time or number of hands that the agreement between backer and stakee will last. This can vary from a minimum of one week, 50,000 hands, or one month. The stake period can then be renewed on a regular basis as agreed upon by both backer and stakee. The stake period that I prefer is one month, where I send you your share and we both have the option to make changes to the stake agreement if needed.

4) stake amount. I always play with the maximum buy in allowed on the table. On full tilt poker, the maximum buy in is 100bb; on pokerstars, this varies depending on the stake level. If the agreed stake is going to be on full tilt poker (ftp) then the expected stake amount is 25 buy ins of 100bb each ($125 for 5NL). If the stake is going to be in pokerstars (ps), then the expected stake amount is going to be 25 buy ins of the maximum buy in for the agreed stake level that I am to play ($312.50 for 5NL).

5) stake level. The purpose of the stake is for the stakee to be able to play higher stake levels. I am currently playing 2NL, taking shots at 5NL when possible. It would be best that the stake start at the 5NL level.

6) make-up. This issue depends from backer to backer. The last backer did not have makeup. This means that if I did not make any profits for the given stake period, then backer will not provide any more funds, get whatever is remaining of the initial stake amount, plus his share of rakeback, bonus and promotions, and cancels the agreement. The first backer, the makeup was, if i did not make profit playing 5NL, i should move down to 2NL and play for an agreed upon period of time. If at the end of this extended period I am still not able to produce any profit, then I will ship back to backer the remaining stake amount, plus any bonus/promotion amount earned.

7) cash-out is at the end of each month.

8) FPP's. At the stake level where I am playing the fpp's have very little dollar amount, and there is no means possible to transfer fpp's to other players at the moment. I propose that I keep the fpp's while playing uNL. If the stake level where I am playing moves up higher where the fpp's will have a bigger dollar amount (low stakes and higher), then sharing fpp's is 50/50 or depending on what we can agree on.

9) You can choose whether to stake me on ftp where i have a rakeback account, or ps where the VIP bonus is higher as I earn higher VIP levels (i am currently playing on bronze level). Or both. Looking at my blog, you will find that I play both accounts alternately everyday. This helps as a check and balance if I am playing my a-game or just going through variance.

10) moving up stakes. For my own bankroll, I will move up the next higher stake level when I have 15 buy ins for that next level. When the bankroll goes below that level, I move back down to the previous stake level and grind it back up again. This means that when I move up, you will then only provide an additional 10 bi for that stake level instead of the initial 25bi.

Let's say I am playing 5NL on ftp with $125 and the bankroll grows to $250 within three days. I will notify you that I am moving up to 10NL. You then have the option to continue the stake and provide the remaining 10bi within a week (that the total bi in the bankroll is 25 bi), or choose to cancel the agreement and i will ship you your share plus the initial stake amount. The benchmark will always be 15bi whether to move up or down a stake level regardless of the fact that you just sent me an additional 10bi for the higher level.

Now, let's say I am playing 10NL and the very next day I tilt and lose $50 on my first playing session. $50 is 5 bi for 10NL. Even though I have 20bi remaining in the bankroll (15bi to move in plus 10bi that you sent minus the 5bi I just lost), i see my bankroll as below my required level and still move down a level. I will not count the additional 10bi that you sent, but see my bankroll as below the 15bi required to stay on that level. I then move back to 5NL (notifying you right then and there) and grind it back up. In a way, the 10bi that you sent when I move up to 10NL serves as a psychological buffer.

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I am looking for a long term business partner, someone who understands the variance of the game. Some days, I run hot, most of the time, variance happens. As everyone knows, it is easy to move up stake levels when you have a credit card. I have plans for the long term and will need investor capital and expertise as the business grows over time.

I think I have covered everything here. I am open to make any changes to these, in such a way that the agreement is a long term win-win situation for the both of us. Let me know if you have any comments, questions or suggestions.

These terms and conditions can and will change over time. I will post changes to this blog as they are made.