# 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://315872909-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FyxIlCHu3O86Awgvwlowa%2Fuploads%2F7EgzdmSZWSk5WuVWbxs6%2FPayout%20Logic.png?alt=media&#x26;token=9dee767f-a61f-48d3-9344-161b0676c1b4" 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