# The Calibration Engine | Proprietary Cost Reconciliation Logic

The **Calibration Engine** is the core intellectual property of Cletrics. It allows the platform to achieve high accuracy without waiting for provider-generated billing files.

## Four-Step Processing Logic

### 1. Ingestion (Usage Layer)
Cletrics collects live resource telemetry (vCPU, Memory, Disk, Network) directly from Cloud APIs (AWS CloudWatch, Azure Monitor, GCP Operations) or via **OpenTelemetry (OTel)** collectors.

### 2. Live Pricing Join (List Layer)
The platform maintains a real-time cache of global cloud list prices. Every usage metric is immediately multiplied by its corresponding list price.

### 3. Weight Calibration (Reconciliation Layer)
This is where the intelligence happens. Cletrics analyzes your **historical actual bills** to calculate a **Custom Weighting Factor** for every service, region, and account. 
- **Example**: If your AWS bill shows a 30% discount on S3 due to an EDP, the engine assigns a 0.70 weight to S3 list prices.

### 4. Weighted Execution (Ground Truth Layer)
The engine applies these custom weights to the live list-price stream. The result is a **Real-Time Estimated Bill** that is 99% accurate to the final statement, delivered 24 hours faster than the provider.

## Benefits
- **No Data Lag**: Unlike the 24-hour CUR delay.
- **Contract Aware**: Accounts for Private Pricing Agreements, Savings Plans, and RIs automatically.
- **Predictive Accuracy**: Alerts are based on "Calibrated Reality," not just raw list prices.