What stops a big investor with 10,000 coins taking their risk to 5% when small fish are playing. Then when whales play, their bot automatically drops the risk to 0.25%, diluting investors like mechs.?
So large investors with a bot that actively manages the risk will fuck smaller investors?
Either way, I think if the max bet is constantly changing so drastically, then whales won't play.
It can be done this way...
Let's say you invest 100 BTC and I 200 BTC. You have 0.25% risk and I 1% risk. Maximum profit will then be 2.25 BTC.
When someone makes a bet with a potential profit of 0.3 BTC. We both risk 0.1%.
When someone makes a bet with a potential profit of 0.6 BTC. We both risk 0.2%.
When someone makes a bet with a potential profit of 1 BTC. You risk 0.25% and I risk 0.375%.
When someone makes a bet with a potential profit of 2.25 BTC. You risk 0.25% and I risk 1%.
Everybody will benefit from the small players, and investors with big risk will benefit extra from the big players. Big investors have no reason to increase the risk only when small fish play because it don't increase their profit.
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