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KYA Strategy

The system provides built-in strategies. Users should check whether these meet business needs before enabling or modifying them.
If source risks (red tags) are detected within the user’s strategy scope, a score will be calculated. The score is diluted based on the distance from the source risk to the queried transaction. Scores from the same type of risk across all paths are aggregated, with the final score taking the highest risk value.
Tracing Method
Starting from the target address, transactions are traced both forward and backward to build a complete relationship graph. The application layer will only display parts that match the user’s strategy. Scoring Calculation
Scores are calculated from the labeled transaction graph based on the user’s scoring rules. When calculating inflows to the target address, scores are diluted proportionally by the share of risky addresses at each level. Strategy Configuration
Each strategy must define a tracing scope, with up to 0–6 hops supported.
Required fields for configuration:
  • Strategy Name (unique)
  • Counterparties: Select from malicious address risk types, sanctioned countries/entities, platform entities, or user-defined black/white lists
  • Calculation Rules: Define scoring ranges based on direct/indirect accumulation, sending, or receiving of specific amounts/percentages from these counterparties
image.png Example The system provides 5 built-in strategies. Users can choose to enable, disable, or adjust them according to their business needs. image.png The address search returns the following score: image.png Strategy: 3-hop | Online Gambling & Black-Gray Market & Money Laundering | By Amount Proportion Within 3 hops, if the cumulative sending or receiving proportion is between 10%-100%, the score ranges from 60 to 99. image.png Strategy: 3-hop | Severe Risk Address | By Amount Proportion Within 3 hops, if the cumulative sending or receiving proportion is between 5%-100%, the score ranges from 60 to 99. image.png
Default Strategy
The platform includes one built-in Default strategy that is invisible and unmodifiable by users. This fallback strategy monitors all types of risks to ensure that any risk not covered by user-defined strategies is still detected. The Default strategy focuses only on the types of addresses within the monitored scope and assigns scores based on the type. If an address already has labels, these are directly reflected in the Default strategy. For example, if an address has both Fraud and Money Laundering labels, and the configured type scores are 100 for Fraud and 80 for Money Laundering, the Default strategy will display scores of 100 for Fraud and 80 for Money Laundering. If users consider the Default strategy too strict, they may choose to rely on other strategy scores and ignore the Default score.

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KYT Strategy

The usage of KYT strategies is consistent with KYA strategies. When using the strategy module, users should first check whether the platform’s built-in strategies meet their business needs before deciding to enable or modify them.
Scores are calculated when there are source risks (red labels) within the user-defined strategy scope. The score is proportionally diluted based on the distance from the source risk to the queried transaction. Scores for the same type of risk across all paths are summed, with the final score prioritizing the highest risk.

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Tracing Method

KYT tracing is based on fund flows. Starting from the target transaction, tracing proceeds only forward. Besides counterparty type, additional stop conditions include dilution amount or dilution proportion. The backend constructs a complete fund flow graph, and the application layer retrieves the risks present in the graph to match strategies and calculate scores.

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Score Calculation

Scores are calculated based on the counterparty types specified in the user strategy and the actual transaction volume, without requiring the user to configure calculation rules. When calculating the amount flowing into the target address, dilution is applied according to the proportion of risk addresses at each layer.

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Strategy Configuration

In addition to malicious addresses, sanction lists, and user black/white lists, the built-in strategies also treat “mixers” as stop points. (Underlying tracing already includes exchange entities, so no additional configuration is needed.) Tracing stops when the dilution ratio reaches 10% or when the amount is less than 5,000 USD. (Amounts are in USD because multi-token tracing is performed simultaneously.) image.png KYT Risk Tracing Example image.png image.png All fund paths include red and yellow labels, covering both source risks and model risks. Strategy: 3 hop | All types | 10% or 5,000 USD
  • Tracing stops within 3 hops when any type of address is encountered, or when the traced amount is diluted to 10% or below 5,000 USD.
  • Only paths containing source risks are considered. The base risk score of each path is diluted according to the proportion of funds and ultimately applied to the target transaction.
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Basic Strategy Configuration

Tokens, address lists, and categories form the fundamental basis for strategy score calculations.

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Tokens

The table lists the networks and tokens currently supported for tracing:
NetworkTokensTracing Range
ETHETH, USDT, USDC-6, +6
TRONTRX, USDT-6, +6
BSCBNB, USDT-6, +6
BTCBTC-6, +6

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Address Lists

  • Sanctions List: Compiled by the platform based on publicly available national and regional sanctions standards.
  • Blacklist: Addresses added by the user. (Assigned a score of 100 in strategies)
  • Whitelist: Addresses added by the user. (Assigned a score of 0 in strategies)

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Risk Categories

these configured scores are used as the basis for dilution in risk calculations.