> ## 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 Oracle

> Cryptographic verification system for offchain points

<img className="block dark:hidden rounded-lg" src="https://mintcdn.com/portal-cca1aca1/aA8XqHdKiqoPu8Np/images/Oracle_Title_Light.png?fit=max&auto=format&n=aA8XqHdKiqoPu8Np&q=85&s=372c3b0f3eae3404e006349469a052c1" alt="Checkpoint Oracle title image, light theme" draggable="false" style={{ pointerEvents: "none" }} width="673" height="169" data-path="images/Oracle_Title_Light.png" />

<img className="hidden dark:block rounded-lg" src="https://mintcdn.com/portal-cca1aca1/aA8XqHdKiqoPu8Np/images/Oracle_Title_Dark.png?fit=max&auto=format&n=aA8XqHdKiqoPu8Np&q=85&s=8ce216e28bfb0f6960fe8e8746665833" alt="Checkpoint Oracle title image, dark theme" draggable="false" style={{ pointerEvents: "none" }} width="673" height="169" data-path="images/Oracle_Title_Dark.png" />

# Checkpoint Oracle

The **Points Oracle** is Checkpoint's verification layer. It fetches points data from offchain
sources and signs it with cryptographic signatures, making the data verifiable onchain.

The Oracle is a core component of Checkpoint and is responsible for writing points data to the
blockchain, verifying claims and settlement among other things.

<CardGroup cols={2}>
  <Card title="Checkpoint NFT" icon="camera-retro" iconType="solid" href="/core-products/checkpoint-point-nfts">
    Checkpoint Points receipt
  </Card>

  <Card title="Oracle Systems" icon="certificate" iconType="solid" href="/architecture/oracle-system">
    Checkpoint verification layer
  </Card>
</CardGroup>

## Oracle Functionalities

The Oracle serves two major functions: verifying offchain point deposits before they go onchain, and
confirming settlement claims when protocols TGE. Fundamentally, these translate to various
programmatic features:

<CardGroup cols={2}>
  <Card title="Signature Verification" icon="pen-nib">
    Validates cryptographic signatures from protocols to verify point claims
  </Card>

  <Card title="Tracks Points Changes" icon="receipt">
    Keeps your point balances updated automatically across all supported protocols
  </Card>

  <Card title="Settlement Verification" icon="handshake">
    Confirms that offers were settled correctly on-chain, on supported chains
  </Card>

  <Card title="Vesting Status" icon="vest">
    Provides vesting status checks and claimable amount calculations for settlement
  </Card>
</CardGroup>

## Oracle Process Breakdown

The Oracle components can be further viewed more granularly by examining the Oracle's workflow

<Steps titleSize="h2">
  <Step title="Signature Verification">
    <Steps>
      <Step title="Deposit Authorization">
        Users request a short-lived authorization payload and sign it as the underlying points
        account owner
      </Step>

      <Step title="Oracle Claim Generation">
        The Oracle verifies that authorization, fetches the latest points balance, and signs the
        deposit claim
      </Step>

      <Step title="Onchain Deposit">
        The operator submits the Oracle-signed claim onchain so the confirmed balance becomes
        tradable
      </Step>
    </Steps>

    <Check>After verification, users should receive a Soulbound [Checkpoint NFT](/core-products/checkpoint-point-nfts)</Check>
  </Step>

  <Step title="Real-time Monitoring">
    <Steps>
      <Step title="Automatic Points Balance Change">
        Point balance changes across protocols automatically
      </Step>

      <Step title="Balance Confirmation">
        Crosschain settlement requirements
      </Step>
    </Steps>

    <Warning>Balance change can trigger a [Shortfall Event](/architecture/market-trading#shortfall-of-points), enabling buyers to cancel offers within a time frame</Warning>
  </Step>

  <Step title="Settlement">
    <Steps>
      <Step title="Settlement Activation">
        Triggers settlement processes when protocols TGE
      </Step>

      <Step title="Balance Reconciliation">
        Reconciles final token distributions with traded point amounts to ensure accurate settlement
      </Step>

      <Step title="Crosschain Verification">
        Coordinates token distribution across multiple chains using LayerZero infrastructure
      </Step>
    </Steps>
  </Step>
</Steps>

<Note>
  **Need Help?** Check out our [API documentation](/api/oracle-api) for detailed integration guides
  and examples.
</Note>