Investments / Distribution of Winningsgreenspun.com : LUSENET : Workshop : One Thread
- A parallel bankroll scheme will be employed.
- The accounting will be handled with software. In the event of software failure (unlikely), the various accounts will immediately be divided up as best as the team manager can decipher and still make consistent with the original intentions. The management's judgments in this regard will be final.
- An investor may open an account with the team at any time, and he may have several separate accounts running (usually entered at different times).
- A player is always playing for all the accounts which together form the whole bankroll.
- Distribution of finances (account maturity) will occur at the conclusion of any trip in which an account has increased to 150% of its original value (after expenses).
- An account automatically matures when its balance falls below $1.
- After the account matures, the program forcefully withdraws it and the players & investors are paid (if the account had profit).
- Each account receives a share of the latest win based on its current balance. New accounts are thus easily added in. Every trip or three, a small portion of the bankroll's accounts should mature and will be cashed out, with the investors hopefully choosing to reinvest then or soon after.
- If an account matures showing no profit, then the investor gets the full remaining balance of the account; players and management get nothing.
- If an account matures showing profit then...
- investor gets 100% of the account's initial investment returned.
- investor gets 50% of the winnings on the account.
- players get 50% of the winnings divided amongst them in proportion to their efforts.
- a commission fee of 10% is charged to each payment (players and investors) and awarded to management. (effectively: investor gets 45% of the profit, players split up another 45%, and management gets 10%)
- In the case of an investor wishing to make a premature withdrawal of his account, there will be a penalty applied to the account: the commission charged on the investor's profits will be increased to 20%.
- Special Exemption for investors: Any new investment account that conforms to all the following criteria will be exempt from commissions (but not from commissions imposed by early withdrawal penalties). This exemption ONLY applies to the investor portion of the profit split (not the player portion).
- The new account is not less than $1000.
- The new account is not less than 10% of the existing BR at the time of investment.
- The new account is placed within 30 days of any previous account by the same investor.
- Three Points:
- the investor is expecting to get (after all the cash is distributed) about 125% of his investment back; the players expect to get about 25% on that same investment.
- in practice, everyones' payments are calculated first and then a commission is taken out of their payment.
- commissions & early withdrawal penalties only apply against profits... no profits - no charge.
-- Anonymous, April 21, 2001