> For the complete documentation index, see [llms.txt](https://docs.foreprotocol.io/fore-protocol/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/fore-protocol/documentation/protocol-roles/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="/files/QocTP9rMwk1Wi9PP4sJi" 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