Overview

The risk model is a sophisticated system designed to calculate risk scores for blockchain addresses based on their associations with various risk categories. The model uses a configurable parameter system that allows compliance officers to fine-tune risk assessments according to their specific requirements.

Ext - ECS Risk Model Parameters define the top-level sensitivity of risk detection, and the Risk Model Configuration System determines the priority for handling alarms during risk scoring.

Architecture

The system is built around the RiskModelParams object, which serves as a centralized configuration container for all risk calculation parameters. The model supports:

• Category-based risk profiles with individual tuning parameters
• Hop-based decay for multi-degree relationships
• Volume-based scaling with logarithmic saturation
• Direction-aware risk factors (SEND vs RECEIVE)

Global Tunable Parameters

Core Configuration

Direction Factors

direction_factors: {
    "RECEIVE": 1.0,  # Risk multiplier for receiving transactions
    "SEND": 1.0      # Risk multiplier for sending transactions
}

Category Risk Profiles

Each risk category can be individually tuned with four key parameters:

Profile Structure

CategoryRiskProfile = {
    "weight": float,              # Base severity weight (0-100+)
    "hop_decay": Optional[float], # Per-hop decay rate (0-1)
    "min_score": Optional[float], # Minimum risk floor
    "default_volume_coef": Optional[float] # Volume coefficient when data missing
}