Risk Factors and how they are calculated

1. Platform NON Testable Risk Factors

1.1. Has Minimal viable product ?

  • TRUE - returns 0
  • FALSE - returns 10

1.2. Uses BlockChain ?

Requires: Minimal viable product

  • TRUE - returns score 0
  • FALSE - returns score 5

1.3. Is BlockChain Usage Planned ?

  • TRUE - returns score 0
  • FALSE - returns score 10

2. Platform Testable Risk Factors

General Risk Indicator is calculated by multiplying each Indicator Score by it's Relevance Risk Indicator Coefficient: and finally adding all the results.

2.1. Token Minting

Relevance Risk Indicator Coefficient: 1

Checks if an ApplicationEntity can Mint Tokens after All Funding Periods are completed ?

  • TRUE - returns Indicator Score 10
  • FALSE - returns Indicator Score 0

2.2. Token Sale - Market decides token value

Relevance Risk Indicator Coefficient: 1

If Token Stake Calculation And Distribution Algorithm is Type 1 - Market decides token value.

  • TRUE - returns Indicator Score 0
  • FALSE - returns Indicator Score 10

2.3. Token Sale - Sell a fixed amount of tokens for a fixed price

Relevance Risk Indicator Coefficient: 1

If Token Stake Calculation And Distribution Algorithm is Type 2 - Sell a fixed amount of tokens for a fixed price.

  • TRUE - returns Indicator Score 0
  • FALSE - returns Indicator Score 10

2.4. Token Sale - Sell a variable amount of tokens for a fixed price

Relevance Risk Indicator Coefficient: 1

If Token Stake Calculation And Distribution Algorithm is Type 3 - Sell a variable amount of tokens for a fixed price and Buy Request Over Limit Action is Deny Transaction

  • returns Indicator Score 5

else Buy Request Over Limit Action is Allow Partial Buy In

  • returns Indicator Score 0

OTHER CASES: - returns score 10

2.5. Funding Risk

Relevance Risk Indicator Coefficient: 1

2.5.1 Only Minimum Required Funding

Exists - TRUE - returns Indicator Score 0 - FALSE - returns Indicator Score 8

2.5.2 Only Maximum Required Funding

Exists - TRUE - returns Indicator Score 2 - FALSE - returns Indicator Score 0

2.5.3 Both Minimum And Maximum Required Funding Exist

  • Operation: Divide Maximum Required Funding to Minimum Required Funding

  • If Ratio smaller or equal to 3 Indicator Score is 0

  • If Ratio higher than 3 and smaller or equal to 6 the Indicator Score is 1
  • If Ratio higher than 6 the Indicator Score is 2

2.6. Accepted Funding Payments

Relevance Risk Indicator Coefficient: 1

2.6.1 Only Milestone Funding Payments Accepted

TODO - Refactor

If any of your Development Milestones does not require Project Investor voting to release the funds then:

  • total up each required milestone that is set as complete and has no voting requirement

  • get percentage of funds required from total for each 10% of minimum that this represents a score increase by 1 point

  • returns calculated score

2.6.2 Only Direct Funding Payments Accepted

  • returns Indicator Score 10

2.6.3 Both Milestone Funding and Direct Funding Payments Accepted

Hint: Use "Milestone Funding Payments Accepted" score and if it is higher than 8, use it.

  • returns Indicator Score 8

2.7. Selling percentage of total supply

Relevance Risk Indicator Coefficient: 1

Selling Supply Ranges

Start End Inclusive Indicator Score
0 50 0
50 60 2
60 70 4
70 80 6
80 90 8
90 100 10

2.8. Milestone Duration

Relevance Risk Indicator Coefficient: 1

Milestone Duration Median Ranges in months

Start End Inclusive Indicator Score
0 0.5 10
0.5 0.75 5
0.75 1 1
1 3 0
3 4 1
4 5 3
5 6 5
6 Inf. 10

2.9. Total Project Duration

Relevance Risk Indicator Coefficient: 1

Total Project Duration Median Ranges in months

Start End Inclusive Indicator Score
0 12 0
12 18 2
18 24 4
24 36 6
36 Inf. 10

2.10. Emergency Fund Exists

Relevance Risk Indicator Coefficient: 1

Asserts if Emergency Fund is used.

  • TRUE - returns Indicator Score 0
  • FALSE - returns Indicator Score 10

2.11. Poorly Defined or No Development Milestones

Relevance Risk Indicator Coefficient: 1

If one milestone value is higher than 50%, or two combined higher than 80%

  • TRUE - returns Indicator Score 0
  • FALSE - returns Indicator Score 10

2.12. Provides a Revenue Distribution Method

Relevance Risk Indicator Coefficient: 1

  • TRUE - returns Indicator Score 0
  • FALSE - returns Indicator Score 10

Platform - Risk Ranking

1. Platform NON Testable Risk Factors

Indicator Name Relevance Risk Indicator Coefficient
1.1. Has Minimal viable product ? 1
1.2. Uses BlockChain ? 1
1.3. Is BlockChain Usage Planned ? 1

@TODO: Update Relevance Risk Indicator Coefficient after more research for better scoring

2. Platform Testable Risk Factors

Indicator Name Relevance Risk Indicator Coefficient
2.1. Token Minting 1
2.2. Token Sale - Market decides token value 1
2.3. Token Sale - Sell a fixed amount of tokens for a fixed price 1
2.4. Token Sale - Sell a variable amount of tokens for a fixed price 1
2.5. Funding Risk 1
2.6. Accepted Funding Payments 1
2.7. Selling percentage of total supply 1
2.8. Milestone Duration 1
2.9. Total Project Duration 1
2.10. Emergency Fund Exists 1
2.11. Poorly Defined or No Development Milestones 1
2.12. Provides a Revenue Distribution Method 1

@TODO: Update Relevance Risk Indicator Coefficient after more research for better scoring