Understanding Risk Scores
Learn how to interpret AML risk scores and what they mean for your transactions
What Are Risk Scores?
Numerical Scale
Risk scores range from 0 to 100, where 0 is the lowest risk and 100 is the highest
AI-Powered
Advanced machine learning algorithms analyze transaction patterns and behaviors
Real-Time
Scores are calculated in real-time based on the latest blockchain data
Risk scores are comprehensive assessments that help you understand the compliance status of cryptocurrency wallets and transactions. Our AI analyzes millions of data points including transaction history, address relationships, known risk indicators, and patterns associated with illicit activities to provide you with actionable insights.
Risk Level Breakdown
Low Risk
Clean transaction history with no red flags detected
Common Characteristics:
- Transactions with verified exchanges
- No connections to known risky addresses
- Regular, predictable transaction patterns
- Compliance with standard practices
Recommendation:
Safe to proceed with transactions. Continue monitoring for any changes.
Medium Risk
Some suspicious patterns detected that warrant attention
Common Characteristics:
- Occasional transactions with unverified sources
- Some connections to addresses with mixed history
- Irregular transaction patterns
- Limited compliance documentation
Recommendation:
Proceed with caution. Conduct additional due diligence before major transactions.
High Risk
Significant risk indicators found requiring immediate attention
Common Characteristics:
- Connections to known illicit addresses
- Patterns consistent with money laundering
- Transactions with sanctioned entities
- High-frequency mixing or tumbling activity
Recommendation:
Exercise extreme caution. Consider avoiding transactions until risks are resolved.
Factors Analyzed in Risk Assessment
Address Relationships
Analysis of connections between addresses
- Direct transaction relationships
- Multi-hop address connections
- Clustering analysis
- Known address associations
Transaction Patterns
Behavioral analysis of transaction history
- Transaction frequency and timing
- Amount patterns and distributions
- Gas fee optimization patterns
- Transaction sequencing
Counterparty Analysis
Assessment of transaction counterparties
- Exchange interactions
- DeFi protocol usage
- P2P transaction patterns
- Service provider relationships
Compliance Indicators
Regulatory and compliance factors
- KYC/AML compliance status
- Regulatory reporting history
- Sanctions list checking
- Jurisdiction considerations
Risk Indicators
Known risk patterns and behaviors
- Mixing service usage
- Privacy coin interactions
- Unusual transaction patterns
- High-risk service usage
Threat Intelligence
External threat and risk data
- Blacklist database matches
- Law enforcement alerts
- Industry threat feeds
- Community reporting
Weighted Scoring System
Our AI uses a sophisticated weighted scoring system where different factors contribute varying amounts to the final risk score. Threat intelligence and known risk indicators carry the highest weight, while transaction patterns and compliance indicators provide important context for the overall assessment.
Interpreting Your Results
Score: 15 (Low Risk)
Wallet shows clean transaction history
Safe to proceed with transactions
Score: 45 (Medium Risk)
Some concerning patterns detected
Conduct additional due diligence
Score: 85 (High Risk)
Significant risk indicators present
Avoid transactions until resolved
Important Considerations
- • Risk scores are guidance tools, not definitive judgments
- • High scores don't necessarily indicate illegal activity
- • Scores can change as new data becomes available
- • Always conduct your own due diligence
When to Act on High Scores
- Scores above 70 with multiple risk factors
- Direct connections to known illicit addresses
- Sanctions list matches or law enforcement alerts
False Positives
- Privacy-focused users may score higher
- DeFi interactions can trigger risk indicators
- New addresses may lack sufficient data