Risk Scoring Engine

Transaction Risk Scoring

Pre-settlement dynamic risk scoring evaluates every transaction before execution with configurable rules and adjustable weights.

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Overview

The Risk Scoring Engine assigns a dynamic score between 0 and 1 to every transaction before it reaches the settlement layer. By analyzing multiple risk factors in parallel, the engine can flag, hold, or reject transactions that exceed configurable thresholds - all before any value moves.

Institutions can tune scoring weights, override thresholds per corridor, and integrate risk data into their own compliance workflows. Every scoring decision is logged to the immutable audit trail for regulatory review.

Scoring Factors

Wallet History Age, transaction volume, prior flags, and behavioral patterns of the originating wallet

Transaction Velocity Rate of transactions within time windows - detects abnormal bursts and acceleration patterns

Counterparty Risk Risk profile of the destination wallet or account, including sanctions screening results

Corridor Rules Jurisdiction-specific regulations, daily limits, and compliance requirements for each corridor

Jurisdiction Analysis Source and destination country risk ratings, FATF status, and bilateral agreement coverage

Structuring Detection Pattern recognition for transaction splitting - multiple smaller amounts to avoid reporting thresholds

Round-Trip Detection Identifies circular flows where funds return to the originator through intermediate accounts

API Endpoint

POST /v1/risk/score

Request

{
  "tx_id": "tx_9a1b2c3d4e5f",
  "from_wallet": "0x7Bcff27567cfE3e67020a0d771a445178756aBa2",
  "to_wallet": "0x84fF5974c8C00F5B323965d925478A244E7d504F",
  "amount": 25000,
  "currency": "USD",
  "corridor": "US-BR"
}

Response

{
  "tx_id": "tx_9a1b2c3d4e5f",
  "risk_score": 0.18,
  "level": "low",
  "flags": ["jurisdiction_mismatch"],
  "action": "allow_with_logging",
  "factors": {
    "wallet_history": 0.05,
    "velocity": 0.02,
    "counterparty": 0.10,
    "corridor_rules": 0.08,
    "jurisdiction": 0.35,
    "structuring": 0.00,
    "round_trip": 0.00
  },
  "evaluated_at": "2026-03-27T14:30:00Z"
}

Risk Levels

Low < 0.25

Medium 0.25 - 0.50

High 0.50 - 0.75

Critical >= 0.75

Actions

Action	Trigger	Behavior
`allow`	Low risk	Transaction proceeds with standard logging
`allow_with_logging`	Low-medium risk with flags	Transaction proceeds with enhanced audit trail and flag details
`hold`	Medium-high risk	Transaction paused for manual review by compliance team
`reject`	Critical risk	Transaction blocked and flagged for investigation

Configurable Rules

Every scoring factor has an adjustable weight that institutions can tune to match their risk appetite. Weights are configured per-organization and can be overridden per-corridor. Changes to weights are versioned and auditable.

{
  "org_id": "org_treasury_01",
  "weights": {
    "wallet_history": 0.15,
    "velocity": 0.10,
    "counterparty": 0.25,
    "corridor_rules": 0.20,
    "jurisdiction": 0.15,
    "structuring": 0.10,
    "round_trip": 0.05
  },
  "thresholds": {
    "hold": 0.40,
    "reject": 0.70
  }
}