I agree with Grant and João.
The important question is, is the author getting a good deal? We think it's a good deal for the authors; other people in the industry say that it's a good deal; and the authors we're working with think that it's a good deal.
This thread, though, shows a big challenge in Quantopian's messaging that I haven't figured out how to solve. How do I best convey this deal on the allocations page, or in press releases? The best language I've found so far is "pay you 10% of the net profit." This language is both accurate and precise, which are necessary and important qualities for any explanation we give.
Unfortunately some people read the language and think "Why is Quantopian keeping 90% of the profit?" Of course, that isn't the case. The vast majority of the profit is returned to the investor who put up the original capital. A cut of that profit is shared by Quantopian and the author to compensate us all for the execution and use of the intellectual property.
Does anyone have a suggestion for a different way to convey this deal? Unfortunately I can't use João's language of a "50% split" because it isn't sufficiently accurate. Different investors have negotiated different deals with Quantopian, and the author's share might be more or less than 50% depending on the individual deal and the algorithm's performance.
Suggestions are most welcome.
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