Risk Monitoring [400]
The below table displays real-time Risk Monitoring inputs into the methodology. These metrics rely on calculations from Credora's privacy-preserving infrastructure.
Credora captures information across digital asset trading venues, bank accounts, and custody solutions. Additionally, Credora captures on-chain assets across Ethereum, EVM compatible chains, and Solana.
Risk Monitoring metrics validate financials and liquidity. Additionally, they permit ongoing monitoring of directional risk and counterparty risk. Credora technology provides verification of reported financial information directly from information sources, enabling confidence in the Credit Assessment.
Category | Factor | Definition |
---|---|---|
Visible Liquidity | Visible Liquidity | Visible Liquidity is defined below, where Visible Assets are real-time Assets captured by the Credora platform: The average of the three most recent Visible Asset percentage snapshots, where Visible Asset % is defined as the 24-hour average of Visible Assets plus Assets validated through account statements, divided by the Reported Current Assets on the balance sheet date. |
Portfolio Equity | Portfolio Equity | Portfolio Equity is defined as Assets - Liabilities, adjusted by the Visible Liquidity score. |
Portfolio Leverage | Portfolio Leverage | Portfolio Leverage is calculated as Debt / Portfolio Equity, where Portfolio Equity is adjusted by the Visible Liquidity score. |
Validation primarily occurs through Risk Monitoring. Where Credora is incapable of capturing information via API, Credit Methodology policies allow for point accumulation through the sharing of documentation. This may include documents verifying account ownership and balances at a specific point in time (e.g. Bank Statement). Credora applies a discount to Asset validation that is not achievable through API.
The scoring curves for multiple factors are included below. On the y axis, the percentage of available points is displayed.
Visible Liquidity
Portfolio Equity
Portfolio Leverage
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