My understanding of your formula is that it is basically the kelly equation.

hat formula gives you a percentage of your bankroll that you should bet. So 4.83 would be 4.83 % of your bank roll.

I would use that as the LAY Liability.

If I had the $3 market rated dog and I had it rated at $5 I would lay to lose 4.83% of your bankroll at $5.

So if my bank was $1000 I would lay to lose $48.30 which would be $48.30/($5-1) which is $12.07 is the amount you would want to stake.

Hope that makes sense.