After running the numbers a bit and looking at some metrics on the commission fees being charged on the Hive-Roller.com site it has been decided that the commission fee charged to investors earnings shall be changed in their favour in order to maximize their profits and thus make investing in the bankroll a more attractive long term investment vehicle. While previously the commission fee on investment profits was 2% taken on all investors profits this has been scaled back to 0.5% in order to increase investors earnings and hopefully attract more users to bolster the bankroll of the site.
One thing this changes beside the the 75% reduction in commission fees on investor profit is that the referral payouts with also be adjusted 75% downwards along side with it. The site can't pay out more than it takes in to folks referring new users, so the new referral payout will work out to 0.0025% ( or 5% of the 0.5% commission fee of the site ) of what the referred player loses.
The actual code that calculates the commission fee as well as referral payout on each losing bet has been provided below in order for folks to be informed of what is actually going on fee wise:
var prelosscalc = m.win;
if(m.win < 0){
m.win=m.win*0.995; /*Calculate what the win is minus the 0.5% commission fee will be*/
var refPayAmt = (prelosscalc - m.win) * 0.005; /*Calculate the referral payout amount */
var siteTakeAmt = (prelosscalc - m.win) * 0.995; /*Calculate the amount the commission fee is*/
}
The m.win variable is the profit or loss a user has sustained on any particular bet and is what gets passed on to the function that calculates investors earnings or loses. If the m.win amount is less than zero it's a loss and thus we've got to apply our commission fee to it as it's investor profit. In order to do this we multiply m.win by 0.995 ( which gives us 99.5% of the initial amount ) and the remainder is what gets sent to the investment profit function. The refPayAmt is a calculation based off of the initial profit/loss ( prelosscalc variable ) from a bet prior to subtracting the adjusted m.win amount to which gives us the the sites profit on a lost bet minus the investor commission fee, then we take 0.5% of that total and give it to the user who refereed the gambler whose just lost.
The siteTakeAmt variable is calculated much the same way as the refPayAmt variable but instead of multiplying by 0.005 (which gives us 0.5% of the multiplied variable ) we multiply it by 0.995 (99.5%) and what we are left with is the amount that is split up by investors currently supplying the bankroll according to what percentage of said bankroll they are currently providing calculated by actual HIVE invested times their investment leverage multiplier.
Below is an example console output of a sanity check I use during development to ensure that the correct amounts are being taken in regards to referral fees and site commission fees:
As you can see that if you add up siteTakeAmt + refPayAmt + m.win you're left with the inital amount described above as prelosscalc which means no HIVE was injected into the system through bad calculations and everyone got the amounts they were intended to get.
Most of you have likely clicked off this post by now due to my throwing super nerdo code up and explaining to folks how the current investment commission and referral payout system calculates it's numbers on lost bets.. But for those of you that have read through all of this thanks a bunch for reading. Bonus points if you actually understand what is going on here. While not super complicated I've probably bungled up the text explanation of it and thus I included the server code itself just in case. Hopefully this clarifies things and the drop to investment commission fees attracts more bankroll into the site. I believe once betting volume picks up this reduced fee will be just fine.
Quite excited for the future of the site and with the upcoming v0.8.0 update coming with a brand new GUI and multi currency support I'm almost certain that we'll see a massive influx of new users and investors come to the site. Hope to see you soon on Hive-Roller.com even if it's just to chat!
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