# What is a Fraction?

A fraction represents the proportion of participation or ownership you have in a specific product on LaProp. This fraction can represent different things in different products. Each type of product defines fractions differently. The product page contains information about the product type it represents. For now, we have the following types of fractions:

## 📄️ Participation fraction

A participation fraction is the portion of ownership held in a particular business or property, established through the terms of a joint venture agreement. This agreement outlines the conditions of the business, such as profit and loss distribution. Each contract may include specific conditions and details for the property or business in question. Therefore, it is accurate to say that each business has a unique and distinct fraction.

## 📄️ Backed fraction

A backed fraction is a digital asset whose value is linked to the value of another underlying asset. These types of fractions can represent various things,