 Chengguan’s most distinctive contribution to Huayan tradition is his theory of the fourfold dharma-realm. This theory identifies four ways of encountering the dharma-realm of dependent arising. Chengguan calls the first the dharma-realm of shi. Shi, for Chengguan, refers to form, mind, and other characteristics. Chengguan characterizes this realm as conditioned, akin to an illusion by virtue of lacking true substance and nature, and containing unreal characteristics. It is the dharma-realm encountered as particularized into innumerably many distinct individuals. Chengguan calls the second dharma-realm the dharma-realm of li. Chengguan understands li to refer to substance, nature, emptiness, quiescence, the immutable nature of all dharmas. He characterizes this realm as identical with true nature. It is the dharma-realm encountered as originally pure and free from defilement. 