What is makeup in poker staking?

 

Makeup is the accumulated losses by a poker player that must be repaid before any profit is split with a staker/backer.

A standard 50/50 deal with makeup means that the staker and player will both ultimately end up with a 50/50 split of profit.  Any losses accumulate and are called makeup.  This is repaid before any profit is accounted for.

Example:

Jon stakes Steve at 50/50+mu.  Jon gives Steve $5,000 to play online poker tournaments.  On his first day he loses $2,000.  Jon gives a $2,000 reload to Steve so that he is back to the full $5,000 bankroll.  Steve now has $2k makeup.

On day 2, Steve loses $4,000.  Jon gives him a $4k reload and now Steve has $6k makeup.

On day 3, Steve loses $3,000.  Jon gives a $3k reload and now Steve has $9k makeup.

On day 4, Steve wins $25,000.  Steve pays the $9k in losses (makeup) back to Jon.  There is then $11k profit left to split (we’re taking out the $5k working bankroll).  Each side gets $5,500.  The math looks like this:

$25,000 – $9,000 makeup – $5,000 bankroll = $11,000 to split.

On day 5, Steve continues playing with a $5,000 bankroll and $0 makeup.

This cycle continues until the two sides decide to end the partnership, typically when makeup is cleared and X amount of agreed upon games have been completed.