Would be interesting to hear Sheets' thoughts about sauce123's style of staking, specifically the expiring makeup.
http://www.leggopoker.com/blogs/sauc...ake-11251.html
2. Structure: Incentive problems plague most cash game staking arrangements. Most arrangements include non expiring makeup, and vague conditions as to when profits may be distributed. Being in makeup provides perverse incentives for everyone. For the backed player, he would prefer the stake be ended tomorrow because while he is in makeup, his backer is freerolling on his wins until he gets back to even. The backer hates when his horse is in makeup because he can't make any money until the horse gets profitable. Moreover, it's incredibly difficult for the horse to continue to play his A game while deep in makeup. And once the horse is out of makeup, how long till he can get his money?
Instead, I will be offering stakes with expiring makeup. Specifically, for a given game/stake, we will pre arrange a sample size at which the horse's makeup disappears, and he is back at even (i.e. freerolling again). For example, a game/stake might be $400 buy in NLHE 6 max. The time of expiry on the makeup is called the interval, for example, 10k hands. The horse plays 10k hands of his $400 NLHE 6max, at the end of which he keeps a pre-arranged percentage of his profits and takes none of his losses. He then has the option of rebooking an identical expiring makeup stake going forward, or to play on his own money, or to renegotiate any of the conditions of subsequent intervals.
As your backer, I am totally indifferent to the size of your interval. If you can only play 5k hands a month, and you want to book your profits every 5k hands to pay your rent, tell me, and we'll make it happen. Profit distirbutions per interval will be designed to distribute expected profits per interval to player/backer in an agreed upon percentage. As interval size decreases, the backer is entitled to more of the absolute profits since he eats all of the losses on losing intervals. You tell me your interval size, and provide me with the necessary statistical information about your play, and I will price you an interval for every game/stake you are interested in.