> For the complete documentation index, see [llms.txt](https://docs-v4.nftx.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs-v4.nftx.io/how-it-works/floor-tokens.md).

# Floor Tokens

Every collection on NFTX becomes a **floor token** — an ERC-20 that represents the collection's floor value and is backed 1:1 by the NFTs in its pool. Deposit an NFT and you receive one floor token; hand a floor token back and you can redeem any floor NFT from the pool. That's the whole idea of NFTX in one sentence: **turn a collection into a token, so a trade never has to wait on a counterparty.**

Floor tokens are sometimes called *collection tokens* or *vault tokens* — same thing. Each one carries the collection's ticker (for example, `MILADY` for the Milady pool).

## Backed 1:1 by the pool

A floor token isn't a claim on one specific NFT — it's a claim on *any* floor NFT in the pool. Because every token is backed by exactly one deposited NFT, the supply always matches the pool:

> If there are 100 Miladys in the pool, there are 100 MILADY tokens in circulation. Redeem one MILADY and one Milady leaves the pool — the two always move together.

That 1:1 backing is what makes the token liquid. One floor token is always worth one floor NFT, so you can sell it instantly at floor value instead of waiting for a buyer who wants your specific NFT.

## Feeless entry and exit

Getting into and out of the fungible state is **free**. Depositing an NFT to mint a floor token, and burning a floor token to redeem an NFT, cost nothing beyond gas. NFTX concentrates its fees in the layers where value is actually being priced — Liquid Listings and swaps — not on the doorway in and out. See [Fees](/core-concepts/fees.md) for the full picture.

## Floor multiples: pricing above the floor

Not every NFT is a floor NFT. A rare trait or a grail is worth more than one floor token, and NFTX prices that premium as a **floor multiple** — the item's price expressed as a multiple of the floor:

* **1.00x** — floor (one floor token)
* **1.50x** — one and a half floor tokens
* **4.00x** — four floor tokens

Floor multiples are what let sellers list non-floor items above floor while still getting instant liquidity. That mechanism is [Liquid Listings](/how-it-works/liquid-listings.md), and it's built directly on top of the floor token.

{% hint style="info" %}
Floor multiples are stored to two decimal places — `100` means 1.00x, `150` means 1.50x. You'll see the same convention throughout the [Listings](/contracts/listings.md) contract.
{% endhint %}

## Where floor tokens come from

Floor tokens are minted and burned by the vault (the [Locker](/contracts/locker.md)) whenever NFTs are deposited or redeemed — see [Minting & Redeeming](/core-concepts/minting-and-redeeming.md) for the flow, [Vaults](/core-concepts/vaults.md) for the container that holds the NFTs, and the [Collection Token](/contracts/collection-token.md) contract for the on-chain ERC-20 itself.