► XENON100 is currently one of the most sensitive experiments to detect WIMP dark matter. ► Detector design and active/passive shielding reduce the radioactive background level. ► The event vertex of an interaction is reconstructed with a few mm precision. ► All position dependent signal corrections are presented in the paper. ► An energy scale exploiting the light-charge anti-correlation leads to an energy resolution competitive with NaI(Tl) crystals. The XENON100 dark matter experiment uses liquid xenon (LXe) in a time projection chamber (TPC) to search for xenon nuclear recoils resulting from the scattering of dark matter Weakly Interacting Massive Particles (WIMPs). In this paper we present a detailed description of the detector design and present performance results, as established during the commissioning phase and during the first science runs. The active target of XENON100 contains 62kg of LXe, surrounded by an LXe veto of 99kg, both instrumented with photomultiplier tubes (PMTs) operating inside the liquid or in xenon gas. The LXe target and veto are contained in a low-radioactivity stainless steel vessel, embedded in a passive radiation shield and is installed underground at the Laboratori Nazionali del Gran Sasso (LNGS), Italy. The experiment has recently published results from a 100 live-days dark matter search. The ultimate design goal of XENON100 is to achieve a spin-independent WIMP-nucleon scattering cross section sensitivity of σ=2×10−45cm2 for a 100GeV/c2 WIMP.