Overview

The Address Risk Score evaluates the potential risk level of a blockchain address. This assessment is based on both on-chain transaction data and off-chain address metadata. The score helps determine an address's credibility and identify potential threats.

Factors Influencing Risk Score

There are two types of risks:

1. Direct risk, determined by an address's own label
2. Exposure risk, determined by an address's exposure to other addresses with direct risk

Direct Risk

• An address may be tagged with a risk label. The compliance risk level determines whether the label is considered High or Medium risk.
• If an address has a High or Medium risk label, this label directly determines its risk level.

Exposure Risk

• An address may be considered risky if it has connections to another address that poses a direct risk.
• Two addresses are considered connected if there are transaction links between them within 8 hops, each with a minimum value of $500.

When an address is exposed to multiple risk sources, its overall risk level is determined by the highest individual risk.

Risk Label List

Risk labels fall into these categories:

• Sanctioned
• Terrorism Financing
• CSAM
• Illegal Market
• Scam and Fraud