The cut refers to the profit distribution in the event of a win after the makeup has been paid back to the stakers.
The cut can be used in full stakings as well as partial stakings.
Player A wants a full staking for a tournament package with a cut of 50:50. This means that after paying back the makeup, the winnings are distributed in equal parts.
Player A wants a cash game staking, invests $1,000 himself and would like another $1,000 provided by others. The cut now shifts from the standardised 50/50 or 60/40 towards the stakee, since he will have to carry the costs caused by a potential loss.