> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bayex.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# CT Framework

> Understanding Conditional Tokens in Bayex

# Conditional Tokens Framework

The **Conditional Tokens Framework (CTF)** is the underlying protocol used by Polymarket. Bayex builds upon this to enable liquid trading of these outcomes.

## Core Concepts

### Conditions

A "condition" is a question to be answered. It is defined by:

* **Oracle**: The address authorized to report the outcome.
* **Question ID**: An identifier for the specific question.
* **Outcome Slot Count**: The number of possible outcomes (e.g., 2 for Binary).

### Position IDs

Each outcome has a unique `collectionId` derived from the condition. Bayex maps these ID's to ERC20 tokens.

## Bayex Adaptation

Bayex simplifies the user experience by Abstracting the complexity of 1155s.

1. **Collateral**: Users deposit collateral (e.g., USDC).
2. **Splitting via Wrapper**: The wrapper calls `splitPosition` on the CTF.
3. **Tokenization**: Instead of the user holding the 1155 tokens directly, the Wrapper holds them and mints 1:1 ERC20 representations.

### Why Wrap to ERC20?

* **Uniswap V4 Compatibility**: AMMs primarily support ERC20 pairs.
* **Composability**: Easier to use in other DeFi protocols.
* **Wallet Support**: Better visibility in standard wallets completely.