The bankroll of Bitnity is financed publicly by bankroll investors, allowing anyone to invest in the bankroll and receive a portion of its profits.
How does it work?
When you invest in the bankroll, you gain a share in the profits and losses. The profits and losses generated by players are distributed among all investors in proportion to their individual stakes in the bankroll. This means that as an investor, you benefit when players lose and are negatively impacted when players win.
To determine profit distribution, the following information are tracked:
- Investor all-time high profit
- Current investor profit (before the game round)
- Round profit (net profit of the current game round)
After each game round:
If the net profit is negative:
It is subtracted from the current investor profit and deducted from the bankroll on a per share basis.
If the net profit is positive:
If (Investor all-time high profit — current investor profit — round profit > 0), all profits will be given to bankroll investors proportionately to protect them from losses and make them whole first.
If (Investor all time high profit — current investor profit — round profit<= 0),
Investor all time high profit—current investor profit is subtracted from the round profit, so all-time high is reached again. The remaining round profit is split 50/50 between bankroll investors and the platform. The investor portion is added to both investor all-time high and current investor profit numbers.
Distribution of bankroll profits
Bitnity aims to not only incentivize and compensate bankroll providers, but also $BTNTY stakers. Therefore, a mechanism for distributing rewards had to be established.
A portion of the internal $BTNTY supply will be staked and the proceeds from it will be used to fund operations, 30% of the platform profit will be allocated to the owners.
Dilution fee
In order to promote long-term investments, maintain a consistent bankroll size and give incentives to early investors, a 2% dilution fee is applied to all investments. This fee is divided among all bankroll investors, including the new investor, in proportion to their stakes. As a result, the actual fee is always less than 2%.
When money is added to the bankroll, the following happens:
- 2% of the amount is deducted and 98% is added to the bankroll.
- The share percentage of each bankroll investor is then calculated.
- The 2% dilution fee is then distributed to each bankroll investor based on their share percentage.
Example:
The bankroll initially has 3 investors, with one holding 50 ETH, another holding 30 ETH, and the last holding 20 ETH. This results in a total bankroll size of 100 ETH, and the respective share percentages are 50%, 30%, and 20%. A fourth investor then joins and adds 10 ETH, but a 2% dilution fee is subtracted, resulting in an actual addition of 9.8 ETH to the bankroll. The new bankroll size is now 109.8 ETH, and the share percentages are recalculated to be 50/109.8, 30/109.8, 20/109.8, and 9.8/109.8. The remaining 0.2 ETH is then distributed among all four investors based on their shares. The first investor, for example, now has 50.091 ETH in their bankroll stake. Finally, the end bankroll size is 110 ETH, with the share percentages calculated based on these final values.
Withdrawing from the bankroll
Withdrawals are not subject to any fees. The funds are taken from the individual investors’ stake amounts, and the share percentages are recalculated.
