I've updated the original post to hopefully clear up some of the questions asked in this thread.
The main changes are under the headers: Shares, Distribution, Dividends and Exit Strategy, posted below too.
I hope things are more clear now. Thanks to everyone who helped get the words out better
and all the investors so far.
Feel free to ask anything else you still think is missing.
Shares:BetKing will create
100,000,000 tokens (100 million) to to represent 100% shares of BetKing, currently owned fully by me.
No new tokens will be created.
30,000,000 (30%) of these tokens will be be sold to investors during the ICO period and distributed at the end of the fund raising period.
The remaining 70,000,000 (70%) will remain in the ownership of me as my 70% equity in BetKing.
The funds raised by selling these shares will be loaned by me interest free back to the company to use for expenses and bankroll.
Distribution:ICO starts at December 1st 2016 at 0:00 UTC and ends at January 1st 2017 at 0:00 UTC.
After the ICO has ended, 30,000,000 shares will be distributed proportionately if the target of 2000 Bitcoin or more is raised.
E.g. if we collect 2000 BTC and your investment is 200 BTC, you'll receive 3,000,000 shares.
These shares will be added to your BetKing account where you will be able to trade with other members on the BetKing website.
Dividends:We will pay dividends as a share of the total profit (revenue-expenses) generated by BetKing in Bitcoin directly to your BetKing account
every 3 months if the total capital is greater than the 2000 Bitcoin loan.
You can withdraw your Bitcoin dividend payment instantly to your own wallet.
This may change to be more frequent, e.g. a month, after the first dividend payment.
For example:
Assume revenue from players losses were 300 Bitcoin in the first three months.
Imagine we paid 5 Bitcoin for fixed cost expenses, 10 Bitcoin on banner ads and 10 Bitcoin on developer contract.
After the 3 months we have 2000 (the initial loan) +300-5-10-10=2275.
275 profit.
So the investors from the ICO would get a dividend share of 82.5 (30% of 275) paid into their BetKing account.
I would be paid 192.5 (70%)
The business would have 2000 Bitcoin left in it from the intial loan.
Another example:
In 3 months players win 100 Bitcoin playing dice.
We paid 5 Bitcoin as fixed expenses (server, cloudflare etc).
We spent 10 Bitcoin on some banner ads.
We spent 10 Bitcoin on a contract developer.
After the 3 months we have 2000-100-5-10-10=1875.
-125 profit.
So there are no dividends to be paid as there was no profit in this time.
The business would have 1875 Bitcoin left in it and no dividends would be paid until this amount was over 2000 again.
Exit Strategy:If BetKing were to be closed for any reason or lost market share to where it stopped generating profit then the initial loan would be paid back to me and then any extra funds left in the business not paid out as dividends yet would be split 30% to investors and 70% to me.
Any assets including the software could be sold and 30% of the sale price distributed to investors.
HOWEVER if BetKing was forced to close suddenly within 3 months of the ICO then all existing funds in the business at that point would be used to pay investors back as close to their full initial investment as possible before I took any share.
There’s also the possibility in future for BetKing to be acquired by a bigger company in which investors will share 30% of the total sale price after the initial loan is paid back to me.
