📊Dynamic pool accounting

This page helps you to better understand the internal logic of dynamic staking

Dynamic staking within the Betfin platform offers a flexible approach to staking, balancing both profits and drawdowns effectively. Here is an in-depth look at its accounting mechanics:

Key Features:

  • Flexible Duration: Operates on adaptable cycles to match platform needs.

  • Risk Management: Caps drawdowns at 5% of the dynamic pool per round.

  • Profit Calculation: Considers both positive and negative results based on game performance.

Staking Pools:

  • Stake Limit: Each pool can hold up to 100 stakes. New pools are created at the start of each cycle or when the stake limit is reached.

  • Funds Balancing: The main staking contract balances funds between dynamic staking sub-pools, ensuring efficient capital allocation and risk management.

Profit Distribution:

  • From Dynamic Staking to Pools: Profits generated from dynamic staking games are first allocated to dynamic staking pools.

  • From Pools to Users: Each pool then distributes profits proportionally among its stakers based on their contributions.

Profit Distribution Scenarios:

Positive profit, pool without drawdown

  1. System counts how big share does the specific pool have on total profit

  1. Payout is distributed to specific staking contracts

Negative profit, pool without drawdown

  1. System counts how big share does the specific pool have on total lost

  1. The total lost is assigned to the pool as a pool drawdown for the next period

Positive profit, pool with drawdown

  1. System counts how big share does the specific pool have on total profit

  1. If the pool profit is higher than the total drawdown from past cycles the remaining part of payout is distributed to specific staking contracts

  1. If the pool profit does not cover the drawdown the drawdown is only decreased for appropriate sum

Negative profit, pool with drawdown

  1. System counts how big share does the specific pool have on total negative profit

  1. The total drawdown is increased for the pool share on the total negative profit

Calculation Window:

  • Performance Evaluation: Occurs at the end of each cycle, evaluating pool performance to calculate and distribute rewards.

Risk Mitigation:

  • Controlled Drawdown: Ensures no single round's drawdown exceeds 5% of the pool.

  • Mechanism of decreasing loss: Users can never reach 100% loss as the negative profit creates lower base of each stake. That motivates new stakers and protect drawdowned stakers.

  • Main pool vs sub-pools - 50% of stakes being held on the staking pools and remaining 50% being held directly on staking contract

    • 50% on dynamic staking contract gives players the coverage of winnings in dynamic games

    • 50% on dynamic staking pools is to cover potential lost in dynamic staking

Dynamic staking on Betfin offers a robust and flexible way for users to earn returns, leveraging the platform's gaming activities. Understanding the intricacies of profit distribution and risk management allows users to maximize their staking benefits while maintaining a clear perspective on potential risks.

Last updated