Payout Logic

Using a binary parimutuel market structure as an example, the payout logic on FORE Protocol is best described by the following diagram:

• Players take positions against each other in a market with two binary outcomes

• Players’ funds are held in a decentralized smart contract until market resolution

• Market odds are determined upon market closure based on market participation on either side

• Payout is determined by the player’s respective share of the winning side relative to the losing side

• 95% of the total market is distributed to winning players

• Payout is trustless and immediate upon resolution