Core Pages

Risk Intelligence

6 min read

What it is

Risk Intelligence quantifies HOW you trade, not WHAT you hold. It computes concentration (HHI across exchanges, chains, pairs, and strategies), consistency (coefficient of variation of daily volume), engagement (active vs quiet days), and anomalies (trades >2 standard deviations from your typical size). A composite Risk Score (0–100, higher = lower risk) summarizes everything into one number.

How to think about it

Most retail platforms call this "Portfolio Health" and invent a number. Risk Intelligence uses transparent, audit-able math — every score is a documented formula, not a black box. Click the Methodology tab to see how each component is computed.

Step-by-step

  1. Portfolio Risk Score (hero card)

    A 0–100 score where HIGHER is better (lower risk). 75+ = STRONG (well-diversified, consistent). 55–74 = MODERATE (some concentration, mostly fine). 35–54 = ELEVATED (worth reviewing). Below 35 = HIGH RISK (you have a real concentration or anomaly problem).

  2. Four sub-scores (right side of hero)

    Concentration (HHI-based), Engagement (active-day ratio), Consistency (CV-based), Anomaly-free (z-score-based). These average into the Portfolio Score. If your Portfolio Score is low, check which sub-score is dragging it down.

  3. Tab — Overview

    Concentration HHI for Exchange / Pair / Chain / Strategy + Activity Profile (Total Trades, Total Volume, Active Days, day-to-day variance CV, size anomalies). The two cards together answer: "where is my concentration risk, and is my trading behavior steady?"

  4. Tab — Concentration

    Visual breakdowns: top 10 pairs by volume (horizontal bar), CEX exchange split (pie), DEX chain split (pie), strategy split (pie). Use this to literally see if you're over-rotated into one venue.

  5. Tab — Anomalies

    Individual trades that were >2σ from your typical size. These are the trades that dominate your P&L exposure. Were they planned (conviction trades) or impulse (FOMO/revenge)? Knowing the difference matters.

  6. Tab — Recommendations

    Plain-English flags the page generated for you. Example: "63% of your volume is on Coinbase. If you lose API access, you lose access to most of your activity." Each comes with concrete suggested action.

  7. Tab — Methodology

    Open math. The exact formulas for HHI, CV, z-score, and the Risk Score composite. Useful when you want to know WHY a metric reads what it does.

Tips & pitfalls

  • HHI 0–1500 = MINIMAL/LOW concentration (well-distributed). 1500–2500 = LOW. 2500–5000 = MODERATE. 5000+ = HIGH. 8000+ = EXTREME (one venue dominates).
  • A high Anomaly count is not automatically bad — it can mean conviction trades. But review each one and journal why you took it.
  • CV > 2 means your daily volume swings wildly. Often a sign of impulse trading. Consider Algo Orders (TWAP/DCA) for consistency.
  • Engagement that's only 10-15% of days isn't necessarily wrong — passive set-and-forget bots have this profile. But active traders with low engagement may have abandoned strategies running.
  • The DEX side intentionally doesn't have "drift" detection here — DEX bots use your wallet directly, so the CEX drift concept doesn't apply.
  • Risk Score updates with the time range. A short window may inflate apparent concentration; check 30d+ for stable readings.