# Relationship between "mark-up" function and payout formula

• Jul 14th 2012, 02:01 PM
BattleCrap
Relationship between "mark-up" function and payout formula
Hey guys, I'm a new user here and its my first post, so go easy.

I am currently starting a small investigation out of my own curiosity.

It's in regards to the pricing (or mark-up) of a share price. Specifically for a piece of action in a poker player (similar to betting on a horse).

The method of calculating payouts to share-holders is called "stakeback" here is the formulae:

Stakeback - Online Poker Staking - ChipMeUp
(There is also a calculator tool for it)

I am trying to explore the relationship of this "Mark-Up" and "Stakeback"

If you need more context I strongly recommend watching this video (THIS IS NOT ADVERTISING, I don't want you to sign up to the site, its just the easiest way for my to explain the scope and context).

What is ChipMeUp - YouTube (Please pay closest attention from 2mins onwards)

Basically my hypothesis goes along the lines of - The feature of being able to add mark-up, is nullified/zero'd if you use the Stakeback payout method.

So far I've been playing with making certain variables zero, and I've been getting interesting results, I was starting to just run a lot of simulations with it at different mark-ups.

Assistance is required from someone with good math and logic, and good common sense.
I can share some of my examples/simulations to help you better understand what I am trying to work out.