Risk Scoring Methodology
The complete public reference for the DCC Framework-1.0 scoring methodology. Every score produced by Digital Credit Compass can be independently verified against this document.
1. Framework overview
DCC Framework-1.0 is a deterministic risk-scoring computation. Each input maps to a fixed bucket; each bucket maps to a fixed score contribution; each module applies CRO-approved weights to produce a 0–100 output. The framework is deliberately not a credit rating and produces no investment opinion — the output is a model-derived risk indicator only.
The framework is deterministic by design: identical inputs always produce identical outputs. There is no model freshness, no randomness, no human override in the scoring path. Where data quality is below the minimum confidence threshold, the framework falls back to the worst-case bucket for that dimension rather than imputing a value.
2. Scoring modules
- M1A
BTC Collateral Lending
Scores venues that lend against Bitcoin collateral. Inputs include collateral control, custody arrangement, jurisdictional accountability, and structural recourse.
- M1B
Treasury Preferred Shares
Scores preferred-share instruments issued by Bitcoin-treasury operating companies. Inputs include BTC coverage of senior obligations, income mechanism, market risk composite, convertibility, and issuer maturity.
- M1C
Stablecoin Yield — CeFi and DeFi
Scores yield-bearing stablecoin positions. The module splits into CeFi (centralised issuers with off-chain reserve attestation) and DeFi (smart-contract protocols with on-chain transparency), each with its own dimension weights.
3. Scoring dimensions
The public Score Page surfaces five rolled-up dimensions. Module-specific inputs map into these dimensions through the per-module bucket map.
- Custody
- Custody measures how the underlying assets are held and who controls withdrawal authority. Self-custody, qualified-custodian, exchange-omnibus, and protocol-non-custodial each map to a defined input bucket.
- Collateral
- Collateral measures the quality, coverage ratio, and segregation of the assets backing the position. For lending venues this is the collateral pool composition; for treasury preferreds it is the issuer BTC coverage of senior obligations; for stablecoins it is the reserve composition.
- Liquidity
- Liquidity measures the depth of secondary markets and the observed withdrawal speed under stress. Total value locked, daily volume, and historical exit-time observations all roll into this dimension.
- Contract
- Contract measures the contractual or smart-contract obligations that govern the position. For CeFi venues this is the issuer terms-of-service and segregation language; for DeFi protocols this is the audit posture, immutability tier, and upgrade-key arrangement.
- Governance
- Governance measures operator accountability, regulatory record, and change-control discipline. Inputs include incorporation jurisdiction, product oversight regime, prior enforcement history, and timelock/multisig posture for on-chain changes.
4. Score bands
| Score | Band |
|---|---|
| 0–25 | CRITICAL RISK |
| 26–40 | HIGH RISK |
| 41–60 | ELEVATED RISK |
| 61–75 | MODERATE RISK |
| 76–100 | LOWER RISK |
5. Calibration
DCC Framework-1.0 is calibrated against 38 historical digital asset failure events.
6. Proof point
Celsius Network · Score: 38/100 · Band: HIGH RISK · Computed: Q1 2022 · Nature: Ex-ante
The Celsius Network ex-ante call is part of the DCC Framework-1.0 calibration record. See the full Celsius score page for the catalog entry.
7. Version history
| Version | Date | Notes |
|---|---|---|
| v1.0.0 | May 2026 | Initial release |
8. Full methodology document
Download DCC_Risk_Scoring_Methodology_v1_0.pdf9. Scored Products
The current DCC score catalog. Each product has a dedicated public Score Page; admin-published scores propagate without a code deployment.
SCENARIO ANALYSIS OUTPUT This output reflects a defined scenario applied to user-specified inputs under DCC Framework-1.0. Outputs vary as a function of input assumptions. Scenario outputs are produced for the purposes of independent analysis and do not represent a forecast, projection, or determination of any kind. All yield estimates, income outputs, LTV calculations, SRI values, and allocation weights are illustrative and scenario-specific.
USER RESPONSIBILITY DCC outputs form one analytical input among others in a broader personal financial process. Users apply their own judgment when interpreting outputs and making decisions. DCC does not hold, move, or have access to any user funds.