How do we calculate the risk?
The risk is calculated taking into account several risk factors and indexes created by our team of experts.
Liquidity risk
- Volume of trades in the market
- Market capitalization
- Comparisons with the entire crypto market
- Concentration per wallet (determining if just one wallet has a very large amount of tokens)
- Tokenomics (where we determine the amount of tokens not in circulation)
Legal risk
- Is the project following the current legislation
- Is there a legal framework covering this project activity, or is it in a legal grey area
Security risk
- Is the project audited by reputable auditors
- Was it ever hacked
- What is the total value locked (TVL)
- How long is the project active
Governance risk
- Is there a reliable and experienced team
- Are the investors trustworthy
Volatility risk
- Beta: beta is how much more volatile is a certain token in relation to the market. Negative beta = token price moves in the opposite direction of the market | Beta = 1, means the token price moves in line with the market | Beta = above 1, means the token price is more volatile than the market
- Value at Risk, or VaR indicates what percentage of your money is at risk in one day
Social risk
- How many followers does the project have
- What is the engagement index
