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Wavy Node assigns a risk score from 0 to 100 to each analyzed blockchain address. The scoring system is deterministic (same inputs always produce the same outputs) and pattern-based: every score is derived from the suspicious patterns detected in the address’s transaction graph.

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Risk scale

A score of 0 means no suspicious patterns were detected, not that the address was verified by a third party.

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How the score is calculated

The score is the weighted sum of every detected pattern, adjusted by its severity, capped at 100:
For example, a single mixing pattern detected as critical scores 72 (60 × 1.2), while an exchange_hopping pattern at medium scores 14 (20 × 0.7).
The engine analyzes the transaction graph to detect suspicious patterns like mixing, peel chains, structuring, and more. Each pattern has a base weight (e.g. mixing and malicious_actor weight 60, peel_chain 50, round_tripping 40) that is multiplied by the severity multiplier of the detected severity. See Risk analysis for the full weight table.
Address labels guide the detection process but never discount the score. For example, smart contracts skip wash_trading and exchange_hopping detection, and exchanges, mixers, bridges, and addresses with more than 500 interactions are treated as opaque nodes in the graph.
The system is fully deterministic: the same address and date range always produce the same result. Quick checks are cached for 1 hour and async analysis jobs for 24 hours.

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Actions by risk level

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Reading the result

Each result includes:
  • risk — the score from 0 to 100
  • patterns — the detected patterns, each with name, severity, involvedWallets, involvedTxs, usdAmount, and a human-readable message
  • reason — reserved for additional context; currently always null

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Suspicious activity

Escalate an address when any of the following conditions are met:
  • Risk score is 70 or higher
  • Any pattern with critical severity is detected
  • Three or more patterns with high severity are detected
The risk scoring system is essential for compliance with regulations such as FATF recommendations, Travel Rule, Mexico’s Fintech Law, and LFPIORPI.

Risk analysis

See the full technical reference with pattern weights, severity levels, and detailed examples.