# Reward & Fee

## **Reward: Payout ratio formula**

The multiplier will be adjusted in accordance with the change in the betting ratio between UP and DOWN. Players with the correct choice will obtain the rewards shared from the prize pool with the corresponding multiplier.&#x20;

The following formulas provide a clear explanation of Payout Ratio and Payout Amount:

* ***Payout Ratio for UP Pool = Total Value of Both Pools ÷ Value of UP Pool***
* ***Payout Ratio for DOWN Pool = Total Value of Both Pools ÷ Value of DOWN Pool***

For example, if there are 15 SOL on the DOWN side and 135 SOL on the UP side, the overall prize pool is 150 SOL. Thus, the payout ratio for DOWN will be: (150/15) = 10x, for UP will be: (150/135) = 1.11x.

***Payout Amount = Payout Ratio x Stake Amount***

In the case above, if the round ended with a DOWN result and you committed 20 LMF to the If the round concluded in a DOWN position and you invested 20 LMF to it, you would get a payment of 20 × 10 = 200 LMF. Your profit (before taxes) would be 200 - 20 = 180 LMF.

In addition, all players will have a chance to receive an NFT piece. The rarity of the piece will depend on the result and the bet. More details about the NFT collection are available in [NFT](/1.0/nft/nft-collections.md).

## **Fee & Tax**

Participants must pay a negligible gas fee for the Solana network to participate in this game. For each transaction, this fee is 0.000005 SOL (approximately $0.001).&#x20;

Additionally, the winner is required to pay a small tax to the Lamas Finance system (in LMF), equal to **2% of the profit** (receipt minus stake). This tax will be split into two parts: 50% goes to Lamas Treasury and the remaining 50% is burned.&#x20;

In the future, the ratio of tax to be burned and tax to be given to the treasury will be modified by governance voting. Additionally, users participating in staking on Lamas Finance will receive a reduction of this tax. This will be described in further detail in [**Tokenomic**](/1.0/tokenomics/lmf.md)**.**


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