# Diapleo Risk Score Methodology

### Overview

The Diapleo Composite Risk Score is a proprietary, quantitative risk assessment of DeFi protocol safety. It is expressed as a single decimal value from **0.0 to 10.0**, where **0.0** represents the lowest available risk and **10.0** represents an extreme or unquantifiable risk profile.

This document defines the methodology underpinning the Composite Risk Score: the six risk dimensions and their scoring logic, the normalization approach, and the exponential decay computation model.

{% hint style="danger" %}
**Important:** This document is the authoritative specification for the Diapleo Composite Risk Score. Any discrepancy between this document and the scoring engine implementation is a bug in the implementation.

This document does not constitute financial advice. A low Composite Risk Score does not guarantee capital safety.\
\
This is just v0, the documentation will continue to undergo constant iterations as we progress.
{% endhint %}

### Document Metadata

* **Document Type:** Methodology Specification
* **Model Version:** 1.1
* **Supersedes:** Version 1.0 (April 2026)
* **Date:** April 2026
* **Owner:** Data & Scoring Team
* **Status:** Active — Governs V1 Scoring Engine
* **Next Review:** V2 launch (Q3 2026)

***

### Six Risk Dimensions

| Dimension           | Weight | Description                                         |
| ------------------- | ------ | --------------------------------------------------- |
| Smart Contract Risk | 25%    | Audit coverage, code quality, vulnerability history |
| Counterparty Risk   | 20%    | Team identity, governance, multi-sig controls       |
| Credit Risk         | 15%    | TVL stability, capital base health                  |
| Liquidity Risk      | 15%    | Exit liquidity, withdrawal mechanisms               |
| Oracle Risk         | 15%    | Price feed reliability, manipulation resistance     |
| Liquidity Trap Risk | 10%    | Operational history, exploit track record           |

All dimensions scored 0–10 (higher = riskier). N/A dimensions are excluded and weights redistributed.

***

### Version History (Summary)

<table><thead><tr><th width="90.78515625">Version</th><th width="129.48046875">Date</th><th>Change Summary</th></tr></thead><tbody><tr><td>1.0</td><td>Apr 2025</td><td>Initial methodology. Five sub-scores. Scale: 0–100. Linear weighted aggregate only.</td></tr><tr><td>1.1</td><td>Apr 2025</td><td>Redesigned to six risk dimensions. Scale changed to 0–10 (higher = riskier). Exponential decay (γ = 1.5) always applied. N/A dimension handling with weight redistribution.</td></tr><tr><td>1.2</td><td>TBD</td><td>Planned: Auditor Tier Registry update; potential addition of cross-chain bridge risk component.</td></tr><tr><td>2.0</td><td>TBD (V2)</td><td>Planned: ML-assisted TVL anomaly detection. Potential γ calibration using empirical protocol loss data.</td></tr></tbody></table>

## Quick Links

<table data-view="cards"><thead><tr><th></th><th></th><th></th><th data-hidden data-card-cover data-type="image">Cover image</th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><i class="fa-bolt">:bolt:</i></td><td><strong>Introduction</strong></td><td>Goal and Purpose</td><td><a href="/files/W8nawhzdUeVcWspFq5AH">/files/W8nawhzdUeVcWspFq5AH</a></td><td></td><td><a href="/pages/7FvWQMF0kTK7HGhlQfmo">/pages/7FvWQMF0kTK7HGhlQfmo</a></td></tr><tr><td><i class="fa-leaf">:leaf:</i></td><td><strong>Score Architecture</strong></td><td>Rating Breakdown</td><td><a href="/files/NvWvSseqMFvGlG5kid03">/files/NvWvSseqMFvGlG5kid03</a></td><td></td><td><a href="/pages/PJEbwB2ICAx3x97Isq8p">/pages/PJEbwB2ICAx3x97Isq8p</a></td></tr><tr><td><i class="fa-globe-pointer">:globe-pointer:</i></td><td>Dimension Definitions</td><td>Score Breakdown</td><td><a href="/files/tJDO2EdUrIOOPhUEIr2c">/files/tJDO2EdUrIOOPhUEIr2c</a></td><td></td><td><a href="/pages/wGrpZqetz6MI3TAdlOlI">/pages/wGrpZqetz6MI3TAdlOlI</a></td></tr><tr><td>Score Computation &#x26; Worked Examples</td><td></td><td></td><td><a href="/files/NvWvSseqMFvGlG5kid03">/files/NvWvSseqMFvGlG5kid03</a></td><td></td><td><a href="/pages/QPzbTvC6XsT5gERiU43E">/pages/QPzbTvC6XsT5gERiU43E</a></td></tr></tbody></table>


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