The Cayley transform is the rational matrix function , defined when is invertible. For the orthogonal group, unitary group, and analogous groups preserving a nondegenerate bilinear form or Hermitian form, it gives a local parametrization near the identity by their Lie algebras. If , expanding both sides gives
so . The inverse chart is wherever is invertible. The Cayley transform of a real skew-symmetric matrix is the positive-definite real orthogonal example.
The formula is not a parametrization of an arbitrary Matrix Lie group. For example, belongs to the special linear Lie algebra, but , so its transform is not in the special linear group. In indefinite form-preserving groups, the Cayley chart's full domain can also meet components outside the identity component of a Lie group; its local behavior near zero alone does not imply a global parametrization.
For a real skew-symmetric matrix , is invertible: would imply . Its Cayley transform is an orthogonal matrix, since transposition gives and the commuting factors cancel in . Also , so in every dimension. If , then . For , the transformed eigenvalue is . In odd dimension , so has a nonzero kernel and fixes that direction.
For a real skew-symmetric matrix , its Cayley transform of a real skew-symmetric matrix with the opposite sign convention has inverse . Since is an orthogonal matrix, symmetry means , or . This forces . Skew-symmetry means , or , which is equivalent to . In that case . Such examples exist in even dimension by taking two-dimensional right-angle rotation matrices in diagonal blocks; in odd real dimension the determinant equation rules them out.

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