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- Rescraped 97 empty/stale files across all sections (developers/, polymarket-learn/, quickstart/, changelog, resources/) - All files now contain actual content fetched from docs.polymarket.com
141 lines
5.9 KiB
Markdown
141 lines
5.9 KiB
Markdown
> ## Documentation Index
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> Fetch the complete documentation index at: https://docs.polymarket.com/llms.txt
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> Use this file to discover all available pages before exploring further.
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# Conditional Token Framework
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> Onchain token mechanics powering Polymarket positions
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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.
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## What is CTF
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The Conditional Token Framework creates **ERC1155 tokens** representing outcomes of prediction markets. Each binary market has two tokens:
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| Token | Redeems for | Condition |
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| ------- | ----------- | -------------------- |
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| **Yes** | \$1.00 pUSD | Event occurs |
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| **No** | \$1.00 pUSD | Event does not occur |
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These tokens are always **fully collateralized** — every Yes/No pair is backed by exactly \$1.00 pUSD locked in the CTF contract.
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## Core Operations
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CTF provides three fundamental operations:
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<CardGroup cols={3}>
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<Card title="Split" icon="scissors" href="/trading/ctf/split">
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Convert pUSD into Yes + No token pairs
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</Card>
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<Card title="Merge" icon="merge" href="/trading/ctf/merge">
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Convert Yes + No pairs back to pUSD
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</Card>
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<Card title="Redeem" icon="hand-holding-dollar" href="/trading/ctf/redeem">
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Exchange winning tokens for pUSD after resolution
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</Card>
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</CardGroup>
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## Token Flow
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<Frame>
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<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" width="1596" height="952" data-path="images/core-concepts/token-flow.png" />
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<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" width="1596" height="952" data-path="images/dark/core-concepts/token-flow.png" />
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</Frame>
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## Token Identifiers
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Each outcome token has a unique **position ID** (also called token ID or asset ID), computed onchain in three steps.
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### Step 1 - Condition ID
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```
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getConditionId(oracle, questionId, outcomeSlotCount)
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```
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| Parameter | Type | Value |
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| ------------------ | --------- | ---------------------------------------------------------------- |
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| `oracle` | `address` | [UMA CTF Adapter](https://github.com/Polymarket/uma-ctf-adapter) |
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| `questionId` | `bytes32` | Hash of the UMA ancillary data |
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| `outcomeSlotCount` | `uint` | `2` for all binary markets |
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### Step 2 - Collection IDs
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```
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getCollectionId(parentCollectionId, conditionId, indexSet)
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```
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| Parameter | Type | Value |
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| -------------------- | --------- | --------------------------------------------------------------- |
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| `parentCollectionId` | `bytes32` | `bytes32(0)` — always zero for top-level positions |
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| `conditionId` | `bytes32` | The condition ID from step 1 |
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| `indexSet` | `uint` | `1` (`0b01`) for the first outcome, `2` (`0b10`) for the second |
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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.
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### Step 3 - Position IDs
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```
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getPositionId(collateralToken, collectionId)
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```
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| Parameter | Type | Value |
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| ----------------- | --------- | ----------------------------------------- |
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| `collateralToken` | `IERC20` | pUSD contract address on Polygon |
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| `collectionId` | `bytes32` | One of the two collection IDs from step 2 |
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The two resulting position IDs are the ERC1155 token IDs for the Yes and No outcomes of the market.
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<Note>
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You can look up token IDs directly via the Gamma API (`GET /markets` or `GET /events`
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— the `tokens` array on each market contains both outcome token IDs). Computing them
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manually is only necessary for direct smart contract integration.
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</Note>
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## Standard vs Neg Risk Markets
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Polymarket has two market types with different CTF configurations:
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| Feature | Standard Markets | Neg Risk Markets |
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| ----------------- | ------------------- | --------------------- |
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| CTF Contract | ConditionalTokens | ConditionalTokens |
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| Exchange Contract | CTF Exchange | Neg Risk CTF Exchange |
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| Multi-outcome | Independent markets | Linked via conversion |
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| `negRisk` flag | `false` | `true` |
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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.
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## Contract Addresses
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See [Contracts](/resources/contracts) for all Polymarket smart contract addresses on Polygon.
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## Resources
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<CardGroup cols={2}>
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<Card title="CTF Source Code" icon="github" href="https://github.com/gnosis/conditional-tokens-contracts">
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Gnosis Conditional Tokens smart contracts
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</Card>
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<Card title="Code Examples" icon="code" href="https://github.com/Polymarket/examples/tree/main/examples">
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Python and TypeScript examples for onchain operations
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</Card>
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</CardGroup>
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## Next Steps
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<CardGroup cols={3}>
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<Card title="Split Tokens" icon="scissors" href="/trading/ctf/split">
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Create outcome token pairs from pUSD
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</Card>
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<Card title="Merge Tokens" icon="merge" href="/trading/ctf/merge">
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Convert token pairs back to pUSD
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</Card>
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<Card title="Redeem Tokens" icon="hand-holding-dollar" href="/trading/ctf/redeem">
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Collect winnings after resolution
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</Card>
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</CardGroup>
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