CTF
Conditional Tokens Framework — Gnosis's ERC-1155 smart-contract standard that Polymarket uses to represent binary outcome tokens on-chain.
Definition
The Conditional Tokens Framework (CTF) is an open smart-contract standard developed by Gnosis that encodes binary (and multi-outcome) prediction market positions as ERC-1155 tokens. Each outcome is a distinct token; holding a YES token entitles the holder to $1 if the condition resolves true and $0 otherwise. Polymarket's order settlement writes directly to CTF contracts on Polygon.
In practice
When a Polymarket maker order is matched, the CLOB relayer batches the transaction and calls the CTF contract to transfer outcome tokens between counterparties. Traders never interact with the CTF directly — the CLOB API and proxy wallet handle it. Understanding CTF matters for auditing on-chain positions: each token_id in the CLOB API maps to a specific CTF position ID, and the Polymarket Data API exposes raw CTF holdings for whale wallet analysis used by copy-trading bots.