As you probably know, some sites like Pokerstars allow you to cash out in all-in situations (for cash games), for example when the players get it all in preflop.

I recently got some interest into it as I hear it's supposed to lower your variance. Basically you get your expected value minus a small fee, smth like 1%.

This is because of a lot of bad beats in the last days.

And good thing that I did just start to cash out, just lost AA vs JJ and QQ vs 1010 today. However, the math of the cashout does not make any sense to me.

I feel like I am getting much less than I should.

Let's assume both players get it all in preflop. One has Aces, the other has an underpair. So equities are roughly 80/20. I am excluding rake for the sake of simplicity.

I would expect 80% EV to mean I put in 10 bucks and get back 8 (10*0.8=8).

However, if I cash out I get 6 (again rough aprox without rake considerations which complicates things a bit).

This is because Pokerstarts calculates your equity against the entire pot. So it calculates the percentage out of 20. 20*0.8=16

So you cash out 16, meaning you are left with 6 dollars of profit. Which means 2 dollars less than the real EV I would expect. This is obviosuly a huuuuuge difference long term.

Am I going mad due to isolation or is this simply rip-off?

I recently got some interest into it as I hear it's supposed to lower your variance. Basically you get your expected value minus a small fee, smth like 1%.

This is because of a lot of bad beats in the last days.

And good thing that I did just start to cash out, just lost AA vs JJ and QQ vs 1010 today. However, the math of the cashout does not make any sense to me.

I feel like I am getting much less than I should.

Let's assume both players get it all in preflop. One has Aces, the other has an underpair. So equities are roughly 80/20. I am excluding rake for the sake of simplicity.

I would expect 80% EV to mean I put in 10 bucks and get back 8 (10*0.8=8).

However, if I cash out I get 6 (again rough aprox without rake considerations which complicates things a bit).

This is because Pokerstarts calculates your equity against the entire pot. So it calculates the percentage out of 20. 20*0.8=16

So you cash out 16, meaning you are left with 6 dollars of profit. Which means 2 dollars less than the real EV I would expect. This is obviosuly a huuuuuge difference long term.

Am I going mad due to isolation or is this simply rip-off?

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