> For the complete documentation index, see [llms.txt](https://docs.ospree.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ospree.io/dashboard/blockchain-analytics/addresses/risk-scores.md).

# Risk scores

Ospree’s **Blockchain Analytics** provides powerful tools to assess and manage compliance risks by analyzing wallet addresses and transactions. **Risk scores** are central to this process, helping you identify and mitigate potential threats efficiently.

### How risk scores are calculated

Ospree’s risk scoring algorithm evaluates several key factors:

* **Transaction Patterns**: Analyzes the frequency, volume, and destination of transactions. Unusual patterns can indicate illicit activity.
* **Counterparty Risk**: Assesses the risk level of counterparties involved in transactions, including connections to sanctioned or high-risk entities.
* **Wallet Reputation**: Evaluates the history of the wallet address, including past associations with darknet markets, scams, or fraud.
* **Geolocation Data**: Considers jurisdictional risks based on the origin and destination countries of transactions.
* **Behavioral Analysis**: Looks at behavioral anomalies, such as sudden spikes in transaction volume or activity.

Ospree uses advanced algorithms and blockchain intelligence to aggregate these factors into a **comprehensive risk score.**

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### Understanding risk score levels

Ospree categorizes risk scores into three levels, providing a clear overview of compliance risk:

<figure><img src="/files/oLJrlbxWxqIYcddlZgjV" alt=""><figcaption></figcaption></figure>

* <mark style="color:green;">**Low Risk (Green)**</mark><mark style="color:green;">:</mark> Safe transaction patterns and trustworthy counterparties. No further action required.
* <mark style="color:orange;">**Medium Risk (Yellow/Orange)**</mark><mark style="color:orange;">:</mark> Potentially risky behavior or associations. Further review is recommended.
* <mark style="color:red;">**High Risk (Red)**</mark><mark style="color:red;">:</mark> High likelihood of suspicious activity or compliance violations. Immediate action is required.

The risk level is displayed using **color-coded bars** on the dashboard, enabling quick visual identification.

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### Using risk scores in Ospree

* **Screening Wallet Addresses**: Enter wallet addresses in the **Blockchain Analytics** search bar to receive a risk score and detailed analysis.
* **Monitoring Transactions**: Continuously monitor transactions in real-time, receiving alerts when risk levels change.
* **Decision-Making**: Use risk scores to determine the need for enhanced due diligence, reporting, or transaction blocking.