Conditional token
The on-chain representation of your Polymarket position. Every YES and NO share is a conditional token.
Prediction Markets 101 editorial team Updated April 16, 2026 1 min read
Definition
A conditional token is a token that pays out based on the resolution of a specific market outcome. Polymarket uses ERC-1155 conditional tokens.
Plain-English explanation
Conditional tokens were designed by Gnosis's Conditional Tokens Framework (CTF). Each token corresponds to one outcome of a specific market. Tokens are fungible within an outcome (all YES tokens in a market are identical) but not across outcomes or markets. Polymarket's smart contracts mint, transfer, burn, and redeem conditional tokens based on trades and resolutions.