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> Fetch the complete documentation index at: https://docs.polymarket.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Overview
# Conditional Token Framework
All outcomes on Polymarket are tokenized on the Polygon network. Specifically, Polymarket outcomes shares are binary outcomes (ie "YES" and "NO") using Gnosis' Conditional Token Framework (CTF). They are distinct ERC1155 tokens related to a parent condition and backed by the same collateral. More technically, the binary outcome tokens are referred to as "positionIds" in Gnosis's documentation. "PositionIds" are derived from a collateral token and distinct "collectionIds". "CollectionIds" are derived from a "parentCollectionId", (always bytes32(0) in our case) a "conditionId", and a unique "indexSet".
> Onchain token mechanics powering Polymarket positions
The "indexSet" is a 256 bit array denoting which outcome slots are in an outcome collection; it MUST be a nonempty proper subset of a condition's outcome slots. In the binary case, which we are interested in, there are two "indexSets", one for the first outcome and one for the second. The first outcome's "indexSet" is 0b01 = 1 and the second's is 0b10 = 2. The parent "conditionId" (shared by both "collectionIds" and therefore "positionIds") is derived from a "questionId" (a hash of the UMA ancillary data), an "oracle" (the UMA adapter V2), and an "outcomeSlotCount" (always 2 in the binary case). The steps for calculating the ERC1155 token ids (positionIds) is as follows:
All outcomes on Polymarket are tokenized using the **Conditional Token Framework (CTF)**, an open standard developed by Gnosis. Understanding CTF operations enables advanced trading strategies, market making, and direct smart contract interactions.
1. Get the conditionId
1. Function:
1. `getConditionId(oracle, questionId, outcomeSlotCount)`
2. Inputs:
1. `oracle`: address - UMA adapter V2
2. `questionId`: bytes32 - hash of the UMA ancillary data
3. `outcomeSlotCount`: uint - 2 for binary markets
## What is CTF?
2. Get the two collectionIds
1. Function:
1. `getCollectionId(parentCollectionId, conditionId, indexSet)`
2. Inputs:
1. `parentCollectionId`: bytes32 - bytes32(0)
2. `conditionId`: bytes32 - the conditionId derived from (1)
3. `indexSet`: uint - 1 (0b01) for the first and 2 (0b10) for the second.
The Conditional Token Framework creates **ERC1155 tokens** representing outcomes of prediction markets. Each binary market has two tokens:
3. Get the two positionIds
1. Function:
1. `getPositionId(collateralToken, collectionId)`
2. Inputs:
1. `collateralToken`: IERC20 - address of ERC20 token collateral (USDC)
2. `collectionId`: bytes32 - the two collectionIds derived from (3)
| Token | Redeems for | Condition |
| ------- | ------------- | -------------------- |
| **Yes** | \$1.00 USDC.e | Event occurs |
| **No** | \$1.00 USDC.e | Event does not occur |
Leveraging the relations above, specifically "conditionIds" -> "positionIds" the Gnosis CTF contract allows for "splitting" and "merging" full outcome sets. We explore these actions and provide code examples below.
These tokens are always **fully collateralized** — every Yes/No pair is backed by exactly \$1.00 USDC.e locked in the CTF contract.
## Core Operations
CTF provides three fundamental operations:
<CardGroup cols={3}>
<Card title="Split" icon="scissors" href="/trading/ctf/split">
Convert USDC.e into Yes + No token pairs
</Card>
<Card title="Merge" icon="merge" href="/trading/ctf/merge">
Convert Yes + No pairs back to USDC.e
</Card>
<Card title="Redeem" icon="hand-holding-dollar" href="/trading/ctf/redeem">
Exchange winning tokens for USDC.e after resolution
</Card>
</CardGroup>
## Token Flow
<Frame>
<img src="https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/core-concepts/token-flow.png?fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=36f5a57946ac2b83136e17b6c06b358c" alt="" className="dark:hidden" data-og-width="1596" width="1596" data-og-height="952" height="952" data-path="images/core-concepts/token-flow.png" data-optimize="true" data-opv="3" srcset="https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/core-concepts/token-flow.png?w=280&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=abc92640ec62d9e02f2097f1c67231cb 280w, https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/core-concepts/token-flow.png?w=560&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=0f3f010e10a5cf39e78e594cdf8e579d 560w, https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/core-concepts/token-flow.png?w=840&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=e26855cc3aeac4b609657690df3d0086 840w, https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/core-concepts/token-flow.png?w=1100&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=78547971ce2f750cb824d2cfdc705171 1100w, https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/core-concepts/token-flow.png?w=1650&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=bfdcab4d02ad6fe37e0549b33b940869 1650w, https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/core-concepts/token-flow.png?w=2500&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=78ec4b0dae7b6dc701e180fbb2e755e4 2500w" />
<img src="https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/dark/core-concepts/token-flow.png?fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=69d150ea49ffa18cd7f24689342b1bec" alt="" className="hidden dark:block" data-og-width="1596" width="1596" data-og-height="952" height="952" data-path="images/dark/core-concepts/token-flow.png" data-optimize="true" data-opv="3" srcset="https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/dark/core-concepts/token-flow.png?w=280&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=0ef33ff2c0ab77156745d8b381dafe00 280w, https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/dark/core-concepts/token-flow.png?w=560&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=8ab82e34078a6811fc929d3bb15ee448 560w, https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/dark/core-concepts/token-flow.png?w=840&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=750c6e303bc8df05bbb335dd79edd2d6 840w, https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/dark/core-concepts/token-flow.png?w=1100&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=4d5553bef579cd8b50f5be39e8e91e61 1100w, https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/dark/core-concepts/token-flow.png?w=1650&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=d69588b8286d2a561101ffbd55364ebd 1650w, https://mintcdn.com/polymarket-292d1b1b/FOMte3ewbG-LVy3k/images/dark/core-concepts/token-flow.png?w=2500&fit=max&auto=format&n=FOMte3ewbG-LVy3k&q=85&s=633d6ce55594e89381b81b30f5f0ad45 2500w" />
</Frame>
## Token Identifiers
Each outcome token has a unique **position ID** (also called token ID or asset ID), computed onchain in three steps.
### Step 1 — Condition ID
```
getConditionId(oracle, questionId, outcomeSlotCount)
```
| Parameter | Type | Value |
| ------------------ | --------- | ---------------------------------------------------------------- |
| `oracle` | `address` | [UMA CTF Adapter](https://github.com/Polymarket/uma-ctf-adapter) |
| `questionId` | `bytes32` | Hash of the UMA ancillary data |
| `outcomeSlotCount` | `uint` | `2` for all binary markets |
### Step 2 — Collection IDs
```
getCollectionId(parentCollectionId, conditionId, indexSet)
```
| Parameter | Type | Value |
| -------------------- | --------- | --------------------------------------------------------------- |
| `parentCollectionId` | `bytes32` | `bytes32(0)` — always zero for top-level positions |
| `conditionId` | `bytes32` | The condition ID from step 1 |
| `indexSet` | `uint` | `1` (`0b01`) for the first outcome, `2` (`0b10`) for the second |
The `indexSet` is a bitmask denoting which outcome slots belong to a collection. It must be a nonempty proper subset of the condition's outcome slots. Binary markets always have exactly two collections — one per outcome.
### Step 3 — Position IDs
```
getPositionId(collateralToken, collectionId)
```
| Parameter | Type | Value |
| ----------------- | --------- | ----------------------------------------- |
| `collateralToken` | `IERC20` | USDC.e contract address on Polygon |
| `collectionId` | `bytes32` | One of the two collection IDs from step 2 |
The two resulting position IDs are the ERC1155 token IDs for the Yes and No outcomes of the market.
<Note>
You can look up token IDs directly via the Gamma API (`GET /markets` or `GET /events`
— the `tokens` array on each market contains both outcome token IDs). Computing them
manually is only necessary for direct smart contract integration.
</Note>
## Standard vs Neg Risk Markets
Polymarket has two market types with different CTF configurations:
| Feature | Standard Markets | Neg Risk Markets |
| ----------------- | ------------------- | --------------------- |
| CTF Contract | ConditionalTokens | ConditionalTokens |
| Exchange Contract | CTF Exchange | Neg Risk CTF Exchange |
| Multi-outcome | Independent markets | Linked via conversion |
| `negRisk` flag | `false` | `true` |
For neg risk markets, an additional **conversion** operation allows exchanging a No token for Yes tokens in all other outcomes. See [Negative Risk Markets](/advanced/neg-risk) for details.
## Contract Addresses
See [Contract Addresses](/resources/contract-addresses) for all Polymarket smart contract addresses on Polygon.
## Resources
<CardGroup cols={2}>
<Card title="CTF Source Code" icon="github" href="https://github.com/gnosis/conditional-tokens-contracts">
Gnosis Conditional Tokens smart contracts
</Card>
<Card title="Code Examples" icon="code" href="https://github.com/Polymarket/examples/tree/main/examples">
Python and TypeScript examples for onchain operations
</Card>
</CardGroup>
## Next Steps
<CardGroup cols={3}>
<Card title="Split Tokens" icon="scissors" href="/trading/ctf/split">
Create outcome token pairs from USDC.e
</Card>
<Card title="Merge Tokens" icon="merge" href="/trading/ctf/merge">
Convert token pairs back to USDC.e
</Card>
<Card title="Redeem Tokens" icon="hand-holding-dollar" href="/trading/ctf/redeem">
Collect winnings after resolution
</Card>
</CardGroup>