Glossary
Conditional tokens (CTF)
Gnosis Conditional Token Framework: ERC-1155 outcome positions split from collateral, keyed by condition_id, redeemed when the oracle answers.
Polymarket’s on-chain core is the Gnosis Conditional Token Framework (CTF). Collateral is split into ERC-1155 outcome tokens whose payoff depends on a condition_id — the hashed question the oracle will eventually answer. Each outcome has a position ID; that is why a wallet can hold YES on one market and NO on another as separate balances.
Split creates a complete YES/NO set against locked USDC. Merge burns the set and returns collateral. After resolution, redeem pays the winning index. NegRisk markets add a conversion layer on top of the same CTF balances so exclusive outcomes can share liquidity without a full NO token for every name.
You do not need to touch CTF directly to trade in the UI — the CLOB and the exchange contracts wrap it. You do need the idea when you read a PnL tape: merges, splits, and conversions are not directional bets, even though they show up as token movements. Polydata’s methodology treats them as accounting so realized profit is cash plus settlement, not every ERC-1155 transfer. condition_id is also our URL key for market pages. If two questions look similar, the condition_id is what distinguishes the contract you actually held.