What Is CTF?
CTF creates ERC-1155 tokens that represent prediction-market outcomes. Each binary market has two outcome tokens:
These tokens are fully collateralized. Every YES and NO pair is backed by
exactly
$1 of collateral locked through the CTF contracts.
Core Operations
CTF provides three operations for moving between collateral and positions:Split
Convert pUSD into a YES and NO token pair.
Merge
Convert a YES and NO token pair back into pUSD.
Redeem
Exchange resolved outcome tokens for their payout.
Token Flow
Token Identifiers
Each outcome token has a unique position ID, which is used as its ERC-1155 token ID. CTF computes it onchain in three steps.1
Compute the Condition ID
2
Compute the Collection IDs
The
indexSet is a bitmask identifying which outcome slots belong to a
collection. It must be a nonempty proper subset of the condition’s outcome
slots. A binary market has one collection for each outcome.3
Compute the Position IDs
The resulting position IDs are the ERC-1155 token IDs for the market’s YES and
NO outcomes. Most integrations should read these token IDs from market data.
Computing them manually is only necessary for direct contract integrations.
Standard and Negative-Risk Markets
Polymarket uses different CTF configurations for standard and negative-risk markets:
For negative-risk markets, a conversion operation can exchange one NO token for
YES tokens in the event’s other outcomes. See Negative Risk
Markets for details.
Contract Addresses
See Contracts for Polymarket’s current smart contract addresses on Polygon.Next Steps
Split a Position
Create outcome token pairs from pUSD.
Merge Positions
Convert balanced token pairs back into pUSD.
Redeem Positions
Collect payouts after resolution.