> For the complete documentation index, see [llms.txt](https://docs.foreprotocol.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.foreprotocol.io/documentation/protocol/fore-markets/payout-logic.md).

# Payout Logic

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

<figure><img src="https://4181678019-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWdY0foqzhq2Fie8SciJU%2Fuploads%2Fa1bqeMLgqNDi0sFdRtnV%2FPayout%20Logic%20(1).png?alt=media&amp;token=f7e176b9-1ad7-4b13-8a06-fb0bb3826c1b" alt=""><figcaption></figcaption></figure>

* Players take positions against each other in a market with two binary outcomes&#x20;
* Players’ funds are held in a decentralized smart contract until market resolution&#x20;
* Market odds are determined upon market closure based on market participation on either side&#x20;
* Payout is determined by the player’s respective share of the winning side relative to the losing side&#x20;
* 95% of the total market is distributed to winning players&#x20;
* Payout is trustless and immediate upon resolution