[proofplan]
We use the [stable manifold theorem](/theorems/2778) for hyperbolic sets to obtain local stable and unstable plaques that vary continuously in the $C^1$ topology and remain uniformly transverse over the compact set $\Lambda$. In adapted local coordinates, an unstable plaque through $x$ and a stable plaque through $y$ are graphs over complementary hyperbolic subspaces, so their intersection is reduced to solving a uniformly transverse finite-dimensional equation. A uniform [implicit function theorem](/theorems/52) gives existence and uniqueness of the nearby intersection whenever $x$ and $y$ are close enough. If $\Lambda$ is locally maximal, an isolating neighbourhood contains a small tubular neighbourhood of $\Lambda$, and the defining stable and unstable estimates keep every forward and backward iterate of the bracket point inside that isolating neighbourhood.
[/proofplan]
[step:Choose uniform local stable and unstable plaques over the hyperbolic set]
Because $\Lambda$ is a compact hyperbolic set for the $C^1$ diffeomorphism $f: M \to M$, the stable manifold theorem for hyperbolic sets applies (citing a result not yet in the wiki: Stable Manifold Theorem for Hyperbolic Sets). Thus there exists $\varepsilon_1 > 0$ such that for every $p \in \Lambda$ and every $\varepsilon \in (0,\varepsilon_1]$, the local stable plaque $W^s_\varepsilon(p)$ and the local unstable plaque $W^u_\varepsilon(p)$ are embedded $C^1$ disks satisfying
\begin{align*}
T_p W^s_\varepsilon(p) = E^s_p
\end{align*}
and
\begin{align*}
T_p W^u_\varepsilon(p) = E^u_p,
\end{align*}
where $T_pM = E^s_p \oplus E^u_p$ is the hyperbolic splitting over $\Lambda$.
The same theorem gives continuous variation of the plaques in the $C^1$ topology with respect to the base point $p \in \Lambda$. Since $\Lambda$ is compact and the splitting $T_\Lambda M = E^s \oplus E^u$ is continuous with $E^s_p \cap E^u_p = \{0\}$ for every $p \in \Lambda$, the angle between $E^s_p$ and $E^u_p$ has a positive lower bound on $\Lambda$. After decreasing $\varepsilon_1$ if necessary, all stable plaques and unstable plaques of size at most $\varepsilon_1$ are uniformly transverse whenever their base points are sufficiently close.
[guided]
The only substantial input at this stage is the stable manifold theorem for hyperbolic sets (citing a result not yet in the wiki: Stable Manifold Theorem for Hyperbolic Sets). Its hypotheses are exactly the hypotheses now in force: $f: M \to M$ is a $C^1$ diffeomorphism, $\Lambda$ is compact, $f(\Lambda)=\Lambda$, and $\Lambda$ is hyperbolic. Therefore, for sufficiently small plaque size $\varepsilon_1 > 0$, each $p \in \Lambda$ has a local stable plaque $W^s_\varepsilon(p)$ and a local unstable plaque $W^u_\varepsilon(p)$ for every $\varepsilon \in (0,\varepsilon_1]$.
These plaques are embedded $C^1$ disks, and at their base point their tangent spaces are the two subspaces in the hyperbolic splitting:
\begin{align*}
T_p W^s_\varepsilon(p) = E^s_p
\end{align*}
and
\begin{align*}
T_p W^u_\varepsilon(p) = E^u_p.
\end{align*}
The splitting is direct, so $E^s_p \cap E^u_p = \{0\}$ and $T_pM = E^s_p \oplus E^u_p$. The compactness of $\Lambda$ matters here because it upgrades pointwise transversality into uniform transversality: the angle between $E^s_p$ and $E^u_p$ is a positive [continuous function](/page/Continuous%20Function) of $p \in \Lambda$, hence has a positive minimum on $\Lambda$.
Finally, the stable manifold theorem gives continuous $C^1$ variation of the plaques with the base point. Thus, if $x,y \in \Lambda$ are close, then the tangent spaces of $W^u_\varepsilon(x)$ and $W^s_\varepsilon(y)$ remain close to $E^u_x$ and $E^s_x$, respectively. Since $E^u_x$ and $E^s_x$ are uniformly transverse, the nearby plaques remain uniformly transverse after decreasing $\varepsilon_1$ and the allowed distance between $x$ and $y$.
[/guided]
[/step]
[step:Represent nearby plaques as transverse graphs in one coordinate chart]
Fix $\varepsilon \in (0,\varepsilon_1]$. For each $p \in \Lambda$, choose a coordinate neighbourhood $U_p \subset M$ and a $C^1$ chart
\begin{align*}
\psi_p: U_p \to V_p \subset E^u_p \oplus E^s_p
\end{align*}
with $\psi_p(p)=0$ and with derivative $d(\psi_p)_p: T_pM \to E^u_p \oplus E^s_p$ equal to the splitting identification. Since $\Lambda$ is compact, finitely many such neighbourhoods cover $\Lambda$.
By the graph form of the local stable manifold theorem, compactness of $\Lambda$ allows the following uniform choice. After decreasing $\varepsilon_1$, choose for each fixed $\varepsilon \in (0,\varepsilon_1]$ a number $r=r(\varepsilon)>0$ and then choose $\delta_1=\delta_1(\varepsilon)>0$ such that whenever $x,y \in \Lambda$ and $d(x,y)<\delta_1$, both full plaques $W^u_\varepsilon(x)$ and $W^s_\varepsilon(y)$ lie in one adapted chart centred at some $p \in \Lambda$. In that chart their entire coordinate images are $C^1$ graphs over closed coordinate balls
\begin{align*}
\overline{B}^u_r := \{a \in E^u_p : |a| \le r\}
\end{align*}
and
\begin{align*}
\overline{B}^s_r := \{b \in E^s_p : |b| \le r\}.
\end{align*}
More precisely,
\begin{align*}
\Gamma^u_x = \{a + \varphi^u_x(a) : a \in \overline{B}^u_r\}
\end{align*}
and
\begin{align*}
\Gamma^s_y = \{\varphi^s_y(b) + b : b \in \overline{B}^s_r\},
\end{align*}
where
\begin{align*}
\varphi^u_x: \overline{B}^u_r \to \overline{B}^s_r
\end{align*}
and
\begin{align*}
\varphi^s_y: \overline{B}^s_r \to \overline{B}^u_r
\end{align*}
are $C^1$ maps. The $C^1$ variation of the plaques and the uniform transversality of $E^u_p$ and $E^s_p$ allow the chart size and $\delta_1$ to be chosen so that both graph maps have Lipschitz constant at most $1/4$ on their domains. Because the displayed graphs represent the entire local plaques of size $\varepsilon$, any intersection of $W^u_\varepsilon(x)$ and $W^s_\varepsilon(y)$ must occur inside this product of closed coordinate balls.
[/step]
[step:Solve the graph intersection equation by a contraction argument]
In the common chart, an intersection point of $W^u_\varepsilon(x)$ and $W^s_\varepsilon(y)$ is equivalent to a pair $(a,b) \in \overline{B}^u_r \times \overline{B}^s_r$ satisfying
\begin{align*}
a + \varphi^u_x(a) = \varphi^s_y(b) + b.
\end{align*}
Because $E^u_p \oplus E^s_p$ is a direct sum, this equality is equivalent to the coupled equations
\begin{align*}
a = \varphi^s_y(b)
\end{align*}
and
\begin{align*}
b = \varphi^u_x(a).
\end{align*}
Define the map
\begin{align*}
T_{x,y}: \overline{B}^u_r \times \overline{B}^s_r \to \overline{B}^u_r \times \overline{B}^s_r
\end{align*}
by
\begin{align*}
T_{x,y}(a,b) = (\varphi^s_y(b),\varphi^u_x(a)).
\end{align*}
The domain is a [complete metric space](/page/Complete%20Metric%20Space) with the product metric induced by the Euclidean norms on $E^u_p$ and $E^s_p$. Since both graph maps have Lipschitz constant at most $1/4$, the map $T_{x,y}$ is a contraction with Lipschitz constant at most $1/4$. By the [contraction mapping theorem](/theorems/71), $T_{x,y}$ has a unique fixed point $(a_*,b_*) \in \overline{B}^u_r \times \overline{B}^s_r$.
The fixed point identities give $a_* = \varphi^s_y(b_*)$ and $b_* = \varphi^u_x(a_*)$, hence
\begin{align*}
a_* + \varphi^u_x(a_*) = \varphi^s_y(b_*) + b_*.
\end{align*}
Thus the corresponding point of the common graph is an intersection point. Pulling it back through the chart gives
\begin{align*}
[x,y] \in W^u_\varepsilon(x) \cap W^s_\varepsilon(y).
\end{align*}
Conversely, every intersection of the full plaques is represented by some pair in $\overline{B}^u_r \times \overline{B}^s_r$ because the previous step represented the entire plaques in this chart. Such a pair is a fixed point of $T_{x,y}$, and the fixed point is unique. Therefore $W^u_\varepsilon(x) \cap W^s_\varepsilon(y)=\{[x,y]\}$.
[guided]
We now turn the geometric intersection problem into a fixed point problem on a precisely defined product box. In the adapted chart, the whole unstable plaque through $x$ is the graph
\begin{align*}
\Gamma^u_x = \{a + \varphi^u_x(a) : a \in \overline{B}^u_r\},
\end{align*}
where $\varphi^u_x: \overline{B}^u_r \to \overline{B}^s_r$ is a $C^1$ map with Lipschitz constant at most $1/4$. The whole stable plaque through $y$ is the graph
\begin{align*}
\Gamma^s_y = \{\varphi^s_y(b) + b : b \in \overline{B}^s_r\},
\end{align*}
where $\varphi^s_y: \overline{B}^s_r \to \overline{B}^u_r$ is a $C^1$ map with Lipschitz constant at most $1/4$.
A point belongs to both graphs exactly when there are vectors $a \in \overline{B}^u_r$ and $b \in \overline{B}^s_r$ such that
\begin{align*}
a + \varphi^u_x(a) = \varphi^s_y(b) + b.
\end{align*}
The decomposition $E^u_p \oplus E^s_p$ is direct, so the $E^u_p$ and $E^s_p$ components must agree separately. Therefore the intersection equation is equivalent to
\begin{align*}
a = \varphi^s_y(b)
\end{align*}
and
\begin{align*}
b = \varphi^u_x(a).
\end{align*}
This is why a fixed point argument is the correct tool: define
\begin{align*}
T_{x,y}: \overline{B}^u_r \times \overline{B}^s_r \to \overline{B}^u_r \times \overline{B}^s_r
\end{align*}
by
\begin{align*}
T_{x,y}(a,b) = (\varphi^s_y(b),\varphi^u_x(a)).
\end{align*}
The codomain is the same product box because $\varphi^s_y$ takes values in $\overline{B}^u_r$ and $\varphi^u_x$ takes values in $\overline{B}^s_r$.
We verify the hypotheses of the contraction mapping theorem. The closed balls $\overline{B}^u_r \subset E^u_p$ and $\overline{B}^s_r \subset E^s_p$ are complete because they are closed subsets of finite-dimensional normed vector spaces. Hence their product is complete for the product metric. For two pairs $(a_1,b_1)$ and $(a_2,b_2)$ in the product box, the Lipschitz bounds on the graph maps give
\begin{align*}
|\varphi^s_y(b_1)-\varphi^s_y(b_2)| \leq \frac{1}{4}|b_1-b_2|
\end{align*}
and
\begin{align*}
|\varphi^u_x(a_1)-\varphi^u_x(a_2)| \leq \frac{1}{4}|a_1-a_2|.
\end{align*}
Thus $T_{x,y}$ is a contraction, with contraction constant at most $1/4$ for the product metric. The contraction mapping theorem gives a unique fixed point $(a_*,b_*)$ in the whole product box.
The fixed point condition means
\begin{align*}
a_* = \varphi^s_y(b_*)
\end{align*}
and
\begin{align*}
b_* = \varphi^u_x(a_*).
\end{align*}
Substituting these identities gives
\begin{align*}
a_* + \varphi^u_x(a_*) = \varphi^s_y(b_*) + b_*.
\end{align*}
Therefore the point represented by this vector in the common chart lies on both plaques. Pulling it back through the chart defines the bracket point
\begin{align*}
[x,y] \in W^u_\varepsilon(x) \cap W^s_\varepsilon(y).
\end{align*}
Finally, uniqueness is global for the local plaques, not merely local inside a smaller box: the previous step represented the entire plaques $W^u_\varepsilon(x)$ and $W^s_\varepsilon(y)$ as the two displayed graphs over $\overline{B}^u_r$ and $\overline{B}^s_r$. Hence any other plaque intersection would give another fixed point of $T_{x,y}$ in the same complete product box. Since the fixed point is unique, no second intersection exists.
[/guided]
[/step]
[step:Use local maximality to keep the bracket orbit inside an isolating neighbourhood]
Assume now that $\Lambda$ is locally maximal. By definition, there exists an open neighbourhood $U \subset M$ of $\Lambda$ such that
\begin{align*}
\Lambda = \bigcap_{n \in \mathbb{Z}} f^n(U).
\end{align*}
Since $\Lambda$ is compact and $U$ is open, choose $\rho>0$ such that
\begin{align*}
\{q \in M : d(q,\Lambda)<\rho\} \subset U.
\end{align*}
Decrease $\varepsilon_1$ so that $\varepsilon_1<\rho$.
Let $\varepsilon \in (0,\varepsilon_1]$, choose $\delta=\delta(\varepsilon)$ as above, and let $x,y \in \Lambda$ satisfy $d(x,y)<\delta$. Put $z=[x,y]$. Since $z \in W^s_\varepsilon(y)$, the defining property of the local stable plaque gives
\begin{align*}
d(f^n(z),f^n(y))<\varepsilon
\end{align*}
for every integer $n \ge 0$. Since $y \in \Lambda$ and $\Lambda$ is $f$-invariant, $f^n(y)\in\Lambda$ for every $n\ge 0$, hence $d(f^n(z),\Lambda)<\rho$ and $f^n(z)\in U$ for every $n\ge 0$.
Similarly, since $z \in W^u_\varepsilon(x)$, the defining property of the local unstable plaque gives
\begin{align*}
d(f^{-n}(z),f^{-n}(x))<\varepsilon
\end{align*}
for every integer $n \ge 0$. Since $x \in \Lambda$ and $\Lambda$ is $f$-invariant, $f^{-n}(x)\in\Lambda$ for every $n\ge 0$, hence $f^{-n}(z)\in U$ for every $n\ge 0$.
Combining the forward and backward inclusions gives $f^k(z)\in U$ for every $k\in\mathbb{Z}$. Therefore
\begin{align*}
z \in \bigcap_{k \in \mathbb{Z}} f^k(U) = \Lambda.
\end{align*}
Since $z=[x,y]$, this proves $[x,y]\in\Lambda$ in the locally maximal case.
[/step]