Risk Assessment

Risk management approaches adopted by RiskShield.

Risk management is key to ensuring that RiskShield is able to have a sustainable business model, guarantee returns on investments, and provide protection. RiskShield introduces a three-step risk assessment approach as follows:

Expert Assessment

The Advisory Board will perform a preliminary risk assessment on new protocols with the following five criteria in mind:

• Project Implementation

• Project Operation

• Founding team qualifications

• Audit

• Code Quality

Meanwhile, additional support from professional security auditing firms may be required depending on the complexities and challenges presented during the assessment. After that, the Advisory Board will provide an assessment report and recommend a security rating as a reference to help the community get a better understanding of the underlying risk of each project.

Learned more about RiskShield's Security Rating Methodology here.

Community Assessment

After the Advisory Board's assessment, the protocol will also need to go through a community-driven risk assessment conducted by volunteers from the community to further evaluate and determine whether to list the protocol for coverage on the RiskShield platform. Members who participate in the community assessment process will receive RSY token rewards.

Continuous Update

After a protocol is listed, preparatory risk models are employed to continuously evaluate the listed protocol's risk levels. This process includes collecting data and information from said protocol such as the staking changes, any claims made against the listed protocol, correlation analysis on new security incidents, and more. Such updates will be reflected in the risk models to provide up-to-date risk assessments.