> ## Documentation Index
> Fetch the complete documentation index at: https://docs.checkpoint.exchange/llms.txt
> Use this file to discover all available pages before exploring further.
# Points Exchange
> Trade points before they become tokens with collateral-backed security
# Checkpoint Exchange
The **Points Exchange** is Checkpoint's core trading platform where users can buy and sell points
before they become official tokens. Some markets mint escrow tokens 1:1 against points, while
non-custodial markets use USDC collateral to determine weighted minting on fill.
Checkpoint Exchange is running at the moment on testnet
An important part of Checkpoint is that trades can be secured with collateral. The collateral is
held in escrow until settlement, cancellation, or overdue handling. In practice this is USDC, and
non-custodial markets can define an ideal USDC collateral-per-point target that influences weighted
minting.
Learn more about the Exchange inner workings.
## Creating and Filling Offers
The market part of the exchange is a decentralized orderbook where users can either create or fill offers.
### Creating a Sell Offer
Selling points requires users to have points to sell. For this, the user needs to have points on a platform that has been integrated to the Checkpoint Ecosystem and a market needs to be available for points to be traded.
Users that want to sell points need to deposit their offchain points to be onchain. For this, the user needs to interact with the Deposit contract and verify that they have points to deposit.
When a user deposits points, they receive a non-transferable NFT that represents the deposit onchain. This NFT becomes a record for users that they have onchain points to trade.
A user needs to have enough available points to be able to make an offer.
[Learn more about Checkpoint NFTs →](/core-products/checkpoint-point-nfts)
After the user has deposited points, they can place a sell offer. A sell offer requires:
* **Amount of points to sell**
* **Price of the points sold**
* **Collateral backing the sell offer**
The collateral amount is separate from the price and acts as a security deposit. On
non-custodial markets it also influences the escrow mint weight buyers receive when filling
the offer. Those markets can enforce a minimum weight and define an ideal
collateral-per-point target.
**Offer Status**
Offers have different statuses and behaviors depending on their state.
* **Created**: Your offer is live and available for buyers to fill
* **Filled**: Your offer has been completely filled by buyers
* **Partially Filled**: Some buyers have filled part of your offer
* **Settled**: The offer has been settled
* **Cancelled**: You have cancelled the offer
**Offer Management**
Once you have created a sell offer, you can manage it through the UI.
* You can only cancel offers that are in "Created" status
* Partially filled offers cannot be cancelled, they must be settled
* When you cancel an offer, you pay a cancellation fee
When cancelling your collateral is returned minus protocol fees and your points become available again for new offers.
Balance change can trigger [Shortfall Event](/architecture/market-trading#shortfall-of-points), enabling buyers to cancel offers within a time frame
Settlement is the final phase where you receive payment for your sold points. Settlement occurs when a protocol's token launches and becomes available for distribution.
**When Settlement begins**
* Settlement is triggered when a protocol's token launches
* No new offers can be created once settlement is active
* Your existing offers must be settled according to their terms
**Settlement Process for Sellers**
* You must transfer the protocol tokens to the settlement contract
* Your collateral is returned to you
* You receive payment for the points you sold
* A settlement fee is deducted from your payment
If you miss the settlement deadline, your pending USDC and collateral are redistributed to escrow token holders.
[Learn more about settlement →](/architecture/program-settlement)
### Filling a Buy Offer
Buying points on Checkpoint Exchange means filling existing sell offers created by other users. You can either fill an entire offer or partially fill it with any amount you choose.
Browse the orderbook to find offers for the points you want to buy. In the UI some of the elements you will see are
* How many points are available
* Price per point or total in USDC
* How much has already been filled (if any)
You cannot fill your own offers, you can only buy from other users' offers
After choosing an offer, you will be able to fill partially or the entire offer. This is
based on how much USDC you are committing to fill. A 50% fill warrants 50% of that offer's
escrow issuance, whether that market mints 1:1 or uses collateral weighting.
This system allows for flexible trading where you can buy exactly the amount of points you want, regardless of the offer size.
Checkpoint does not currently have a secondary market for escrow tokens (chXXX)
After filling an offer, the market mints escrow tokens (`chXXX`). On escrowable markets the
mint is 1:1 with points. On non-custodial markets the mint amount depends on the offer's
collateral weight.
**Escrow tokens are not TGE Tokens**
`chXXX` represents a user's escrow-side share in the market, not a guaranteed 1:1 amount
of future TGE tokens.
The protocol can also mint `fillExtra` to the treasury on every fill. This is
a small inflation at the escrow layer and is used for seeding secondary market liquidity.
`chXXX` can mint 1:1 or via collateral weighting depending on the market, but it is never a fixed promise of an equal number of TGE tokens.
[Learn more about escrow settlement conversion →](/architecture/points-tokenization#2-escrow-token-chxxx-tokens)
Settlement is the final phase where you receive the actual protocol tokens for your purchased points. Settlement occurs when a protocol's token launches and becomes available for distribution.
**Settlement Process for Buyers**
* You can claim your protocol tokens using your escrow tokens
* The system calculates your share from the global settlement snapshot for that market
* You receive the actual protocol tokens and may also receive a pro-rata share of any pooled USDC from overdue offers
* Your escrow tokens are transferred into settlement as part of the claim flow
**Overdue Settlement**
* If a seller fails to provide their protocol tokens during settlement, the offer enters the overdue stage
* The offer's filled USDC and collateral are added to the program-wide USDC pool
**Cross-Chain Settlement**
* Settlement can occur on different chains than where you bought the points
* You'll receive your protocol tokens on the appropriate chain
* You may need to claim tokens on a different chain than where you made the purchase
[Learn more about settlement →](/architecture/program-settlement)
Learn more about the Fee Structure.
## Explore Further
Visit the Checkpoint Exchange to start trading points today
Explore and learn about Checkpoints architecture