[guided]The key insight is that hyperbolicity provides an **exponential dichotomy**: the linear map $L_s = e^{A_s}$ contracts (its spectral radius is less than $1$), and $L_u^{-1} = e^{-A_u}$ contracts (since $A_u$ has eigenvalues with positive real part, $e^{-A_u}$ has spectral radius less than $1$). This dichotomy allows us to solve the functional equation $u \circ \tilde{\Phi} - L u = -\tilde{g}_1$ by summing geometric-type series -- forward iterations for the stable component, backward for the unstable.
Decompose $u = (u_s, u_u)$ according to $\mathbb{R}^n = E^s \oplus E^u$. The conjugacy equation $u(\tilde{\Phi}(x)) - L\,u(x) = -\tilde{g}_1(x)$ splits into two equations, one for each component:
\begin{align*}
u_s(\tilde{\Phi}(x)) - L_s\,u_s(x) &= -(\tilde{g}_1)_s(x), \\
u_u(\tilde{\Phi}(x)) - L_u\,u_u(x) &= -(\tilde{g}_1)_u(x).
\end{align*}
**Solving the stable component.** Rearrange the first equation as $u_s(x) = L_s u_s(\tilde{\Phi}^{-1}(x)) + (\tilde{g}_1)_s(\tilde{\Phi}^{-1}(x))$ (substituting $\tilde{\Phi}^{-1}(x)$ for $x$). Now iterate: replace $u_s(\tilde{\Phi}^{-1}(x))$ by the same formula applied at $\tilde{\Phi}^{-1}(x)$, and so on:
\begin{align*}
u_s(x) &= L_s\bigl[L_s u_s(\tilde{\Phi}^{-2}(x)) + (\tilde{g}_1)_s(\tilde{\Phi}^{-2}(x))\bigr] + (\tilde{g}_1)_s(\tilde{\Phi}^{-1}(x)) \\
&= \sum_{k=0}^{N-1} L_s^k\,(\tilde{g}_1)_s(\tilde{\Phi}^{-(k+1)}(x)) + L_s^N\,u_s(\tilde{\Phi}^{-N}(x)).
\end{align*}
Since $\|L_s^N\| \leq C\mu^N \to 0$ as $N \to \infty$ (with $0 < \mu < 1$) and $u_s$ is bounded, the remainder $L_s^N u_s(\tilde{\Phi}^{-N}(x)) \to 0$. The series therefore converges absolutely, yielding
\begin{align*}
u_s(x) = \sum_{k=0}^{\infty} L_s^k\,(\tilde{g}_1)_s(\tilde{\Phi}^{-(k+1)}(x)).
\end{align*}
**Solving the unstable component.** The unstable equation is handled symmetrically. Rearrange as $u_u(x) = L_u^{-1}[u_u(\tilde{\Phi}(x)) + (\tilde{g}_1)_u(x)]$ and iterate forward. Since $\|L_u^{-k}\| \leq C\mu^k \to 0$, the resulting series
\begin{align*}
u_u(x) = -\sum_{k=1}^{\infty} L_u^{-k}\,(\tilde{g}_1)_u(\tilde{\Phi}^{k}(x))
\end{align*}
converges absolutely.
**Why does smallness of $\varepsilon$ matter?** The series solution requires that $\tilde{\Phi}$ be invertible (for the stable part) and that the iterates $\tilde{\Phi}^k$ do not grow so fast that they overwhelm the exponential decay of $L_s^k$ or $L_u^{-k}$. Since $\tilde{\Phi} = L + \tilde{g}_1$ with $\operatorname{Lip}(\tilde{g}_1) \leq \varepsilon$, the map $\tilde{\Phi}$ is a small perturbation of $L$ in the Lipschitz topology. For $\varepsilon$ small enough, $\tilde{\Phi}$ is invertible (as a perturbation of the linear isomorphism $L$) and its iterates grow at a rate controlled by $\|L\| + \varepsilon$, which is dominated by the geometric decay rate $\mu < 1$ of $L_s^k$ and $L_u^{-k}$.
Alternatively, one can package this as a single operator $\mathcal{T}$ on the Banach space $C_b(\mathbb{R}^n, \mathbb{R}^n)$ given by $(\mathcal{T}u)(x) := L^{-1}(u(\tilde{\Phi}(x)) + \tilde{g}_1(x))$, and verify that $\|\mathcal{T}u_1 - \mathcal{T}u_2\|_\infty \leq \|L^{-1}\| \cdot \|u_1 - u_2\|_\infty$. Since $L^{-1}$ on each subspace has norm bounded by $C\mu < 1$ (after the dichotomy splitting), $\mathcal{T}$ is a contraction, and the [Banach Fixed-Point Theorem](/theorems/???) produces the unique solution $u$.[/guided]