Scoring Framework & Methodology
A comprehensive guide to how DYOR AML evaluates on-chain risk, signals categorization, and data integrity for Ethereum and Solana networks.
The DYOR Risk Index
0 - 30: Low Risk
Minimal exposure to known high-risk entities. Standard behavioral patterns observed.
31 - 65: Medium Risk
Indirect exposure (2+ hops) to sanctioned or high-risk clusters. Moderate behavioral anomalies.
66 - 100: High Risk
Direct exposure or significant volume flow to sanctioned entities, mixers, or known illicit actors.
Score Drivers & Weighting
- Direct Exposure (45%): Direct interaction with known risk clusters.
- Behavioral Anomalies (30%): Patterns such as "peeling" or rapid burst activity.
- Entity Proximity (25%): Weighted distance to high-risk counterparties.
Signals & Intelligence Categories
Aggregating public and commercial data sources for deep visibility.
Sanctions-Related
Identification of addresses with direct or indirect links to entities identified in global sanctions lists.
Exposure Indicators
Volume-weighted analysis of funds flowing from mixers, darknet markets, and high-risk exchanges.
Behavioral Patterns
Detection of suspicious transaction mechanics like peeling chains, rapid-hop routing, and bot-like activity.
DEX Flow Insights
Monitoring of decentralized exchange interactions to identify liquidity pool manipulation or wash trading.
Entity Clustering
Proprietary pattern grouping that links disparate addresses to a single underlying actor or organization.
Token Provenance
Historical tracking of specific assets to ensure they do not originate from compromised protocols or exploits.
Graph-Derived Risk Analysis
Entity Clustering
We identify "Pattern Groupings" where multiple addresses exhibit shared ownership behavior, creating a unified risk profile for an entity.
Hop Distance Calculation
Measuring the degrees of separation between the target wallet and known illicit clusters. Risk decays as "Hop Distance" increases.
Exposure Summation
Aggregating the total volume of funds received from specific risk categories to determine the "Effective Exposure Rate."
Final Risk Synthesis
Combining graph metrics with behavioral signals to produce the final 0-100 score, optimized for rapid operational workflows.
Data Integrity & Freshness
On-chain data is indexed directly from the mempool and finalized blocks.
Risk calculations are refreshed shortly after block finalization.
Strict verification of data feeds from multiple commercial and public sources.
Known entity labels and sanction clusters are updated every 24 hours.
Native support for Ethereum (L1) and Solana high-throughput data.
Stale or incomplete data triggers a "Cautionary" indicator by default.
False Positives & Limitations
Understanding the nuance of automated risk screening.
What causes a false positive in scoring?
False positives often occur when a wallet interacts with large, multi-user platforms (like centralized exchanges) that have not been properly clustered, or when a user receives unsolicited "dust" transactions from high-risk sources. Our model uses volume-weighting to minimize the impact of dust, but edge cases remain.
How can I reduce the risk of misclassification?
Reviewing the "Signals" breakdown is critical. A high score driven solely by "Indirect Exposure" (3+ hops) should be treated differently than one driven by "Direct Sanctions Match." We recommend using our scores as a primary filter, followed by manual review for Medium-High risk flags.
Is this a substitute for KYC/EDD?
No. DYOR AML provides risk indicators based on on-chain behavior and public data. It does not verify the real-world identity of the wallet holder. It should be used as one component of a broader compliance program, not as the sole basis for regulatory satisfaction.
How are conservative defaults applied?
When data is ambiguous or clusters are newly identified, our system defaults to a "Cautionary" state. This ensures that users are alerted to potential risks even when a definitive "High Risk" classification cannot yet be made with high confidence.
Operational Disclaimer & Responsible Use
DYOR AML provides risk intelligence intended for decision support only. We do not provide legal, financial, or regulatory advice. The outputs of our scoring system do not constitute a guarantee of compliance or a definitive statement on the legality of any transaction. Users are solely responsible for their own operational decisions and are encouraged to refer to our full Terms of Service and Disclaimer for detailed guidance on data usage and liability limitations.