Risk Levels

​

Risk Level Categories

​

🔴 High Risk

• Direct connections to known illicit activities
• Sanctioned entities or individuals
• Confirmed hacking incidents
• Money laundering patterns
• Darknet marketplace activity

​

🟡 Generally High Risk (Medium Risk)

• Indirect connections to risky entities
• Unusual transaction patterns
• High-risk jurisdiction involvement
• Newly emerged suspicious patterns

​

🟢 Low Risk

• No direct connections to illicit activities
• Normal transaction patterns
• Established entities or individuals
• Clean blockchain history

​

⚪ Whitelist

• Addresses from compliant centralized exchanges
• Institutional addresses with verified compliance
• Well-known compliant funds
• System-verified trusted entities

​

Risk Scoring Algorithm

​

Direct Risk Factors

• Known blacklist matches
• Sanctions list matches
• Confirmed scam reports
• Law enforcement reports

​

Behavioral Risk Factors

• Transaction volume patterns
• Counterparty connections
• Jurisdiction risk
• Entity type risk

​

Network Risk Factors

• Proximity to high-risk addresses
• Chain analysis results
• Fund flow patterns
• Time-based patterns

​

Risk Level in API Responses

​

KYA Risk Assessment

{
  "success":true,
  "code":1,
  "msg":"SUCCESS",
  "data":{
    "time":1726107623669,
    "address":"13mnk8SvDGqsQTHbiGiHBXqtaQCUKfcsnP",
    "network":"btc",
    "whitelist": false,
    "risks":[
      {
        "riskLevel":"high",
        "riskType":"sanction",
        "riskSource":"Bitrace"
      }
    ]
  }
}

​

KYT Transaction Screening

{
  "success":true,
  "code":1,
  "msg":"SUCCESS",
  "data":{
    "risks":[
      {
        "riskLevel":"low",
        "riskType":"scam"
      },
      {
        "riskLevel":"high",
        "riskType":"online-gambling"
      },
      {
        "riskLevel":"generally-high",
        "riskType":"launder-money"
      }
    ],
    "externalId":"87111618424664721806777127547213",
    "resultTime":1723542989406,
    "analyseStatus":true,
    "hash":"0xddeb5d1e29a88ac9e0a304f415628ff45f53c7278127de7f47c75b43bebcce8f",
    "value":1902.31608,
    "blockTime":1718669807000,
    "address":"0x974caa59e49682cda0ad2bbe82983419a2ecc400"
  }
}

​

Risk Scores

{
  "success":true,
  "code":1,
  "msg":"SUCCESS",
  "data":{
    "scores":[
      {
        "address":"TFskN28dBDqv8tLKtM2GwroGx7bKDUSnBW",
        "score":"92",
        "riskBehavior": [
          {
            "riskType": "scam",
            "percent": "80"
          },
          {
            "riskType": "online-gambling",
            "percent": "5"
          }
        ]
      }
    ],
    "requestId":"26784916292200597542974738410940",
    "customId": "1234567",
    "status":1003
  }
}

• 80-100: Severe Risk
• 50-79: High Risk
• 20-49: Medium
• 0-19: Low Risk

​

Custom Risk Thresholds

function checkRisk(riskLevel, riskScore) {
  // Custom threshold logic
  if (riskLevel === 'high' || riskScore >= 80) {
    return 'BLOCK';
  } else if (riskLevel === 'generally-high' || riskScore >= 50) {
    return 'REVIEW';
  } else {
    return 'ALLOW';
  }
}

​

Risk Level Updates

• Real-time: High-priority risks (e.g., new hacks)
• Daily: Medium-priority updates
• Weekly: Comprehensive risk model updates

​

Best Practices

1. Layered Approach: Use both risk levels and risk scores for comprehensive assessment
2. Context Matters: Consider risk levels alongside business context
3. Regular Reviews: Periodically review medium-risk addresses
4. False Positives: Report potential false positives to improve accuracy
5. Compliance Alignment: Align your risk thresholds with regulatory requirements

​

Related Resources

• Risk Types - Detailed risk category information
• API Reference - Endpoint documentation
• Error Codes - Error handling