[Kips Bay Kid]

Ok this forum seems more appropriate.

Assuming Option 1 is the only set of terms he will agree to, he is a winning player but he does not want to or cannot assume liability for losses.

I am thinking 75/25 - I get 75% of the profits, he gets 25% of the profits, I take 100% of the losses.

Does it make any sense to change terms once a threshold is met?

For example -

I stake him $5k - this is for online cash games.

When he is able to pay back the initial investment to me in profit, meaning he turns a $6666.67 profit making my cut $5k then we change the arrangement to a 60/40 split, and then when he turns an additional $8,333.33 in profit then we set the terms to a 50/50 split? Let's say we stop the staking if he is able to run that up to an additional $10k giving me another $5k in profit and then have my initial $5k investment returned.

In summary, assuming he never goes negative (ideal world):

I stake him $5k
After he makes a $6,666.67 profit (at 75/25 terms), I take $5k out and he takes out $1,666.67.
After he makes an additional $8,333.33 profit (at 60/40 terms), I take $5k out and he takes out $3,333.33.
After he makes an additional $10,000.00 profit (at 50/50 terms), I take $5k out and he takes out $5k.
Staking ends and he sends the initial $5k back to me.

I might want to make this more granular, just not sure how these agreements are usually capped. Any advice?