On-Chain Risk Scoring

The core idea

REAL makes risk visible by embedding it in the asset token itself, not in a separate dashboard.

The 3 asset types on REAL

Any cash-flow asset can be onboarded as:

• Unsecured: tokenized only (highest risk)

• Scored: tokenized + probability-of-default (PD) score

• Insured: cash flows partially/fully insured (lowest risk)

Risk grades (A–F)

REAL also uses embedded risk classification grades inside token metadata:

• A: all cash flows + principal insured

• B: >75% cash flows insured

• C: ≤75% cash flows insured

• D: no insurance + low PD

• E: no insurance + high PD

• F: no insurance + no PD

“Colored tokens” (important concept)

One real-world asset can have multiple “versions” on-chain:

• Same bond, different insurance coverage → different token options → different price/risk.
  Users choose the token that matches their risk appetite.

Why embedding risk matters

Because it makes assets:

• Composable across DeFi (apps can read risk from the token)

• Transparent for users

• Easier to compare (A vs D vs F is instantly meaningful)