# Score Computation ### 4. How the Composite Score Is Computed The composite score combines all applicable dimension scores through a two-step process: linear weighting followed by exponential decay. #### 4.1 Linear Weighted Score For all dimensions where a score exists (non-null): ``` C_L = Σ (Di × Wi) ``` Where weights `Wi` are normalized to sum to 1.0 after excluding N/A dimensions. **Default weights:** | Dimension | Weight | | ------------------- | ------ | | Smart Contract Risk | 25% | | Counterparty Risk | 20% | | Credit Risk | 15% | | Liquidity Risk | 15% | | Oracle Risk | 15% | | Liquidity Trap Risk | 10% | If a dimension is N/A, its weight is redistributed proportionally. For example, if Liquidity Trap Risk (10%) is N/A, the remaining dimensions' weights are scaled by `1 / 0.90` so they sum to 1.0. #### 4.2 Exponential Decay The exponential decay function is always applied to the linear score: ``` C_E = 1 + 9 × ((C_L − 1) / 9) ^ γ where γ = 1.5 ``` This penalizes mid-range scores more severely. A protocol scoring 5.0 linearly will score higher (riskier) after decay, making mediocre risk profiles stand out more clearly. *** ### 5. Worked Examples **Protocol A** — Strong across all dimensions: * Linear: 1.8 → After decay: **1.3** (Very Low Risk) **Protocol B** — Mixed, mid-range scores: * Linear: 4.5 → After decay: **5.2** (Elevated Risk) **Protocol C** — Weak, multiple high-risk dimensions: * Linear: 7.0 → After decay: **7.8** (High Risk) *** ### 6. Hard Overrides Hard overrides supersede mathematical computation. For example, any protocol with an instant upgradeable single-key mechanism has its Counterparty Risk dimension floored at a minimum risk score. *** ### 7. Score Update Triggers Scores recompute on scheduled and event-driven triggers. *** ### 8. Minimum Data Requirements Protocols must meet minimum thresholds to receive a Composite Risk Score. Protocols with insufficient data are labeled accordingly rather than receiving an artificially low-confidence score. *** ### 9. Methodology Versioning & Governance Defines version policy, change process, and conflict of interest policy. *** ### 10. Limitations & Disclaimers Risk indicator, not a guarantee; relies on public data; γ parameter is calibrated but not yet empirically validated at scale. *** ### 11. References * * --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.diapleo.com/documentation/getting-started/publish-your-docs.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.