> ## Documentation Index
> Fetch the complete documentation index at: https://docs.wavynode.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk analysis

> Detected patterns, volume scaling, and response examples from the Wavy Node risk scoring system.

This page covers the patterns Wavy Node detects and how to interpret the results you receive from the [Scan Risk](/api-reference/endpoint/get-scan-risk-results) endpoint. For an overview of how risk scores work, see [Risk scores](/concepts/risk).

## Detected patterns

The analysis engine identifies the following risk patterns in the transaction graph:

| Pattern                | Severity | Description                                            |
| ---------------------- | -------- | ------------------------------------------------------ |
| `mixing`               | Critical | Use of mixing services to hide fund origins            |
| `peel_chain`           | High     | Transaction chains to fragment and obscure funds       |
| `structuring`          | High     | Splitting amounts to avoid reporting thresholds        |
| `round_tripping`       | Medium   | Funds returning to origin after multiple hops          |
| `mass_wallet_creation` | Medium   | Coordinated creation of multiple wallets               |
| `wash_trading`         | Medium   | Artificial transactions to simulate volume             |
| `exchange_hopping`     | Low      | Rapid movement between exchanges to break traceability |

## Volume scaling

Detection thresholds adjust based on the wallet's transaction volume to reduce false positives for high-activity addresses.

| Transactions     | Scaling factor |
| ---------------- | -------------- |
| Under 1,000      | 1.0x           |
| 1,000 - 10,000   | 1.5x           |
| 10,000 - 50,000  | 2.0x           |
| 50,000 - 100,000 | 2.5x           |
| Over 100,000     | 3.0x           |

## Response examples

<AccordionGroup>
  <Accordion title="Clean wallet" icon="circle-check">
    ```json theme={null}
    {
      "address": "0x1234...",
      "riskScore": 10,
      "riskLevel": "minimal",
      "suspiciousActivity": false,
      "patterns": []
    }
    ```

    No detected patterns. Standard monitoring applies.
  </Accordion>

  <Accordion title="Registered exchange" icon="building-columns">
    ```json theme={null}
    {
      "address": "0x3f5ce5fbfe3e9af3971dd833d26ba9b5c936f0be",
      "riskScore": 0,
      "riskLevel": "minimal",
      "suspiciousActivity": false,
      "patterns": [],
      "metadata": {
        "isRegisteredExchange": true,
        "exchangeName": "Binance"
      }
    }
    ```

    Registered exchanges receive an 80% discount on their risk score.
  </Accordion>

  <Accordion title="Suspicious address" icon="triangle-exclamation">
    ```json theme={null}
    {
      "address": "0xabcd...",
      "riskScore": 78,
      "riskLevel": "high",
      "suspiciousActivity": true,
      "patterns": [
        { "type": "mixing", "confidence": 0.85, "severity": "critical" },
        { "type": "peel_chain", "confidence": 0.70, "severity": "high" }
      ]
    }
    ```

    Mixing combined with peel chain. Requires immediate investigation.
  </Accordion>

  <Accordion title="Critical risk" icon="skull-crossbones">
    ```json theme={null}
    {
      "address": "0xmixer...",
      "riskScore": 92,
      "riskLevel": "critical",
      "suspiciousActivity": true,
      "patterns": [
        { "type": "mixing", "confidence": 0.95, "severity": "critical" },
        { "type": "structuring", "confidence": 0.88, "severity": "high" },
        { "type": "round_tripping", "confidence": 0.82, "severity": "medium" }
      ]
    }
    ```

    Multiple laundering techniques detected. Urgent escalation and regulatory report required.
  </Accordion>
</AccordionGroup>