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

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