> For the complete documentation index, see [llms.txt](https://manic.gitbook.io/manic.trade-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://manic.gitbook.io/manic.trade-docs/markets/initial-price-future-price-and-payout.md).

# Initial Price, Future Price, and Payout

Markets move quickly, and prices are constantly updating. When users enter a position on Manic, three key inputs work together to determine the potential payout: the **initial price**, the **`digitalPrice`**, and the **future price** at expiry.

To make this concrete, we use the following definitions:

* $$t\_0$$ : the entry time. It represents the moment when the user opens a position.
* $$P\_0$$ : the initial price. It represents the price of the underlying asset at $t\_0$.
* $$t\_i$$ : the expiry time. It represents the time when the position expires. Users choose this when they open the position.
* $$P\_i$$ : the future price. It represents the price of the underlying asset at $t\_i$.

How the payout is determined:

* At expiry, Manic compares the initial price $$P\_0$$ with the future price $$P\_i$$ at the chosen $$t\_i$$.
* Based on the user's direction (HIGHER or LOWER), stake, and the `digitalPrice` implied by market volatility and timeframe, the protocol calculates the final payout automatically and settles it on‑chain.

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