Staking - Adjusted Mark Up
In multi-day events, where players can play more than one Day 1 event and bring their biggest stack forward to the Final Day, or where they can bring multiple Day 1 stacks forward to the Final Day. This is where you will find 'Adjusted Mark-up.'
Why is the Mark-Up Adjusted?
As players are selling their action midway through an event, every player's stack size will be different, with those at the head of the field having an advantage over those players with a smaller stack. This is where Adjusted Mark Up comes in. Adding a premium to players whose stacks are larger. Please note that you can only sell action on a Final Day if your starting stack is larger than the original starting stack for the event.
So how does it work?
There is a formula to calculate the adjusted markup, which makes it fair for all players and increases exponentially the more chips you have relative to the original starting stack in the tournament.
The formula here is 1.35*(Final Day Chips/Day 1 Starting Chips)^0.75
Can I then add my markup on top of this?
Yes, players can set a markup of between 0.5 (technically a mark-down) and 2.0, which will be applied to the adjusted markup.
So if the player above sets their markup to 1.5, you would need to multiply the adjusted markup by 1.5 to get this player's true cost of buying action.
So if this were a $100 buy-in event with an adjusted markup of 43.81, to buy 1% ($1) of the player's final day action would cost
$1*(1.5*43.81) = $65.72 per $1 of action