This is how all traditional game financing deals work and isn't anything unusual. How the recoupment on the advance on royalties is calculated is where you can

This is how all traditional game financing deals work and isn't anything unusual. How the recoupment on the advance on royalties is calculated is where you can usually see if the deal is generous or not. Sometimes the entity funding (in the old days it would always be a publisher like EA) would try to set recoupment terms that made it difficult to ever earn a royalty for the developer taking the advance.