🏠The House

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The House on Qupaca is decentralized and community-owned. Anyone can deposit to participate in House winnings, and take exposure to House losses. Read more: Innovation 1: Decentralized House.

House Returns Example

Expected House returns over a given period of time can be calculated with this formula:

$$E(\text{Return}) = \frac{p{\text{(House)*}}(\text{Volume}) - p{\text{(Player)*}}(\text{Volume})}{\text{\$ in House}}$$

Let’s say there’s $50,000 in the House, $18,000 daily bet volume, and an average House Edge of 1%.

$$E(\text{Return}) = \frac{{\text{(0.505)*}}(\text{\$18,000}) - {\text{(0.495)*}}(\text{\$18,000})}{\text{\$50,000}}$$

That’s an expected daily return of 0.36%. It may not seem like much, but on a monthly and yearly timescale that’s 10.8% and 129% respectively. Let’s say Johnny Deposit provided $2,500 to the House. In this example, his stake would grow to $5,725 in one year!