Hey, Would you beat your friend for 100 dollars?
What does this mean?
a) Requesting someone to beat his/her friend for 100 dollars?
b) Asking whether they would beat his friend for 100 dollars ?
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As stevekeiretsu says, the question could be hypothetical or it could be a request. The grammar is fine. The punctuation and use of capitals is awful! :-)
The question might be simpler if you used 'their' for the person addressed each time:
a) Requesting someone to beat their friend for 100 dollars.
b) Asking whether they would beat their friend for 100 dollars.