Investing at Bitvest
Bitvest allows its players to play just like other casinos, but also offers the unique feature allowing users to be "The House". By investing in the bankroll, investors earn profits off the loss of other players, this is a great way to "compete" against the players and have an expected return of over 100%.
How does it work?
Unlike conventional casinos where you bet against a bankroll held solely by the owner. At Bitvest, our investors control the bankroll! When a player wins or loses, the bet goes to this public bankroll and generates profits (or losses) for all those who are invested. To keep everything running and fund development, we change a small commission explained in detail below.
Calculating your share
Your share is equal to (Your_Investment / (Global_Bankroll + Your_Investment)) * 100%. If you had 1 BTC invested, and the global bankroll was 99 BTC before you invested, your share would be: (1 / (99 + 1)) * 100% = 1% meaning 1% of all profits and losses would be applied to your investment.
What is margin?
Margin is used to increase the size of your investment, without having to deposit additional funds. If you were to invest at a 5x margin, you'd earn 5x the profits, but also have exposure to 5x the risk. For example, in a case where you'd earn 0.01 BTC profit off a bet, with 5x margin you'd earn 0.05 BTC, however, in the case where you'd lose 0.01 BTC, you'd lose 0.05 BTC instead. If you feel the risk is worth the extra reward, then you may opt to invest on margin.
We only recommend the use of margin to those who understand the risks involved; however, it can be a great way to drastically increase your earnings and control a larger share of the bankroll. The majority of our investors at this time use a margin of 3.00 - 5.00x.
If you use margin, your share will be equal to (Your_Investment * Margin / (Global_Bankroll + Your_Investment * Margin)) * 100. In the case above, if you invested on 5x margin, your share would be: (1 * 5 / (99 + 1 * 5)) * 100% = 4.808%. This is not equal to 5% because the size of the bankroll was slightly increased by your use of margin.
Calculating profit and loss
To determine how much profit or loss you'd receive from a bet, calculate your share using the formulas above. Once you have your share, multiply it by any profit or loss. For example, Bob has a 10% share of the bankroll; a player loses 0.25 BTC on his bet. Bob would receive 10% * 0.25 = 0.025 BTC in profits.
The formula for profit/loss is Your_Share * Total_Profit = Your_Profit.
Commissions are made up of three small fees, the "Betting Commission", "Token Commission", and "Bonus Commission".
First, for the Betting Commission. We take a small fee, leaving up to 66% of profits to investors, using the remainder to help fund operations at Bitvest. Commissions are taken based on the amount bet.
For example, if 100 BTC was bet on dice, we'd collect 0.0034 * 100 = 0.34 BTC in commissions.
With the same 100 BTC bet on dice, investors would earn on average 0.01 * 100 = 1 BTC income, then subtracting commission: 1 BTC - 0.34 BTC = 0.66 BTC profit.
The formula for Betting Commission is Commission_Rate * Quantity_Bet = Betting_Commission.
Note: Referred users will have their referral pay added to commissions, making their effective commission rate 37.40%, or up to 40.12% in the case of multiple levels of referrals under them.
Betting Commission Rates
Below are the commission rates and your expected share of the profits.
|Game||Commission||House Edge||Profit Share|
|*Keno's house edge varies by paytable. The commission rate is determined per-bet based on the house edge to target a 66% profit share for investors.|
Token Commission Rates (Effective Feb. 14, 2020)
Tokens are credited to users for completing betting challenges, using the faucet, and participating in chat. These tokens may be converted to BTC or any altcoins each user chooses. The token programme encourages users to come back, bet more, and try new things. As such, it generally leads to higher revenue for both investors and Bitvest as a whole.
When tokens are created, we charge a fee to investors based on their value, and how popular each coin is. This is determined based on betting volume and which coins tokens are most frequently converted to. A full daily breakdown of token creation fees can be seen here.
To make Bitvest more attractive to VIP players and high-rollers, we will occasionally offer VIP bonuses. Funding from these promotions is paid for both by investors and Bitvest itself.
All upfront costs will be funded 100% from Bitvest. Upfront costs are any credit to a bettor that isn't directly tied to betting or is a payment for something the bettor had done before the bonus was offered.
Any running costs will be paid for 83% by investors, and 17% by Bitvest. Running costs are bonuses paid to a bettor for future betting. This is generally payable per unit of volume, for winning contests, or achieving betting goals.
We may reserve future costs ahead of time for guaranteed payouts, such as bet volume contests which are guaranteed to have a winner.
We will only offer bonuses that are expected to net a profit for both investors and Bitvest.
A live breakdown of all bonuses paid can be seen here.
What are commissions used for?
A large part of our commission goes to funding new content and promotions which bring in more players resulting in increased investor income. Commissions are used on the following:
- The Faucet to keep players coming back and allow new players to play for free
- The RainBot to make chatting even more fun and exciting
- Daily quests to encourage players to try out new games and bet more frequently
- Advertising and our referral program to attract even more users to Bitvest
- Server hosting and maintenance to keep us up and running
- Continuing development of exciting new games and features
- Exclusive promotions for VIP bettors to bring in more action
- ... And much more!
Are there any risks to investing?
Yes! Like any investment, there exists a chance of loss. At Bitvest, you will generally earn a profit, however, if players are luckier than expected, you may have a loss. The longer you stay invested, the greater chance you have of profiting.
What have previous investors earned?
You may check out our historical charts page to see how previous investments have performed. Keep in mind past performance does not guarantee future returns.
Why should I trust Bitvest?
We are fully transparent with our proof of liabilities and reserves to show all investments and deposits are held by us and accounted for.
We take security seriously, at any given time, over 98% of funds will be stored in our cold wallets, or Trezors. This ensures that the majority of coins are stored offline, and large transactions require manual verification and a physical action to move the coins.
We're here to help!
If there's any additional info you require or any points that are unclear, feel free to ask us in chat! If your request is for additional data, you may PM Zodiac (/pm zodiac message).