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

# How it works

Graded is an escrow, and liquidity provider for collectors.\
\
We connect fragmented liquidity onchain into a single user experience. We also allow you to use your existing collections off chain to be traded with these collectibles onchain. <br>

## Tokenization

Physical cards are vaulted, insured, and represented as digital tokens on-chain. Each token maps to one specific graded slab sitting in a secure vault. The token is how you trade, sell, and track it — the physical card stays protected.

Multiple partners vault cards on the platform (Collector Crypt, Courtyard, Phygitals), and all of them work natively on Graded. You can also list your own physical cards directly — tokenization isn't required to use the marketplace or portfolio.

## Identity

Every graded card has a cert number from its grading company (PSA, BGS, CGC, SGC). That number is the card's unique fingerprint — one cert, one slab, one card.

When you look up a cert on Graded, we pull the full identity: card name, set, year, grade, and population data. That identity follows the card across the entire platform — your portfolio, the marketplace, trades, and price history.

### Pricing

Graded has its own pricing engine that pulls real sold data from major auction and marketplace platforms. When you look up a card or check your portfolio value, here's what happens:<br>

1\. We identify the card and pull population data — how many exist at each grade

2\. We aggregate recent sold prices, filtered by exact grade and grading company

3\. We calculate Fair Market Value using a recency-weighted formula — recent sales count more than older ones, so the price reflects the actual market right now

4\. Every sale is stored, so you get price history charts over any timeframe

This isn't an estimate or a catalog number. It's what the card is actually selling for.

### Portfolio

Your portfolio value is the sum of every card's current FMV, updated continuously. The app tracks:

• Total value — Updated with real market data

• Cost basis — What you paid, editable per card

• P\&L — Gain or loss per card and across your whole collection

• Charts — Portfolio performance over time

Physical cards at home and tokenized cards are tracked the same way. Same pricing, same charts, same P\&L. Your entire collection in one place.<br>

### Escrow & Trading

Every trade goes through on-chain escrow. No trust required between buyers and sellers.<br>

1\. You propose a trade — your offered cards and funds move to escrow

2\. The other person reviews and accepts or declines

3\. Accept — assets swap instantly. Both sides get what was offered.

4\. Decline — everything returns to your wallet automatically.

Nobody touches the assets in between. The escrow can only do two things: complete the swap or return everything. Settlement is instant, final, and can't be charged back.<br>

### Wallets

You don't need a crypto wallet to use Graded. Sign in with email, Google, or Twitter — Privy creates embedded Solana and Ethereum wallets for you automatically. No seed phrases needed.

If you already have wallets with tokenized collectibles, link them in settings. Every card across all your wallets shows up in your portfolio with pricing and P\&L.<br>

### Packs

Pack openings are provably fair, and can be verified via the Verifiable Random Function(**VRF**) When you open a pack, your device generates a unique signature that gets recorded on-chain before we see it. That signature determines your pull through a verifiable random function — we can't predict, manipulate, or retry the result. Every opening is independently verifiable.