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There are currently 810 champion levels.
Each level gives you a passive champion point that you can distribute in the champion tree to increase various secondary stats (regen, different damage types, resists, cost reduction, penetration etc.).
champion 160 is the max equipment level (after that all items you drop are cp160 and the scaling doesn't work anymore, so you can stuff yourself for real at that point).
Yes, Champion Points (CP). At CP 160 you reach the gear level cap. You can distribute a total 810 CP among three passives trees, but you can actally earn more.
Else there's the champion system, actually capped at 810 points you can spend (you can reach CP 1000 for example but you'll only be able to spend 810 points). They recently stopped to increase the cap each update, "until further notice".
Did you read the official explanation on the login queue?
https://forums.elderscrollsonline.com/en/discussion/467936/pc-eu-server-update-april-11/p1
Max gear lvl/CP is 160. So things like undaunted keys (monsters sets) should be obtained at CP 160 so they don't become a waste. matching lvl/CP gives you the most out of your gear (with CP 160 gear being for 160 and above CP).
CP is account wide meaning every char you make will have the same amount usable. For example I have cp 597. Every character can use 597 no matter the lvl (even a new one can use it). The CP xp is the same, so if I am halfway to 600, then all my chars that are going to be halfway to 600 (unless they are below lvl 50).
Like stated above there is green, red, and blue. (each has its three branchs). You get a CP point for one branch, then the next, and so forth. So green -> blue -> red, then loops back. Normally the blue is damage related stats, the red for resistance related stats, and green for things related to stam and resources .