HAI Group's CORE.3 Introduces a New Probability of Loss Risk Metric for Web3

Summary:
HAI Group has launched CORE.3, a new risk intelligence platform offering the first open, data-driven Probability of Loss (PoL) framework for the Web3 sector. This tool evaluates the operational and security risks of digital asset projects using on-chain data, aiming for standardized assessments free from traditional investment ratings.

Key Takeaways

HAI Group introduces the CORE.3 platform, a risk intelligence tool for Web3.
CORE.3 features the first open, data-driven Probability of Loss (PoL) framework.
The PoL metric quantifies the risk of financial loss when engaging with crypto projects.
The initial rollout includes assessments for 50 digital assets, with plans to expand to over 1,000 projects.
The platform focuses on security, financial integrity, operational robustness, and regulatory compliance.
CORE.3 operates as an open-access framework for projects to monitor their scores.

CORE.3 PoL framework quantifies Web3 project risk

Introduction to the CORE.3 Platform

HAI Group has officially launched its CORE.3 risk intelligence platform, bringing forth what it describes as the first open, data-driven Probability of Loss (PoL) framework tailored for the Web3 industry. According to the company, the platform transforms on-chain activity into standardized risk metrics that assess both operational and security risks tied to digital asset projects. Initially, CORE.3 provides risk evaluations for 50 digital assets, with the goal of extending its coverage to more than 1,000 projects within three months.

How the PoL Metric Works

The PoL metric offers a forward-thinking numerical score that estimates the likelihood of financial loss associated with a specific cryptocurrency project. HAI Group emphasizes that the PoL serves as an alternative to traditional indicators like Total Value Locked (TVL) and market sentiment.

Utilizing over 100 data points across various key risk dimensions, the PoL framework assesses factors like security, financial integrity, operational resilience, reputation, and adherence to regulations. The methodology is structured in three tiers:

Conditions - Factual data points such as audit remediation status or management of admin keys.
Metrics - Grouped assessments in areas including smart contract risk and reserve transparency.
Categories - Prioritizes risks across domains with an emphasis on critical factors such as security.

The score resulting from this analysis provides a quantifiable risk assessment, where higher scores indicate a greater probability of loss.

Additional Features of CORE.3

In addition to the PoL score, the platform includes a feature known as “Proof-of-Opinion,” which assesses subjective factors like market relevance and ecosystem adoption, although this component does not factor into the overall PoL score.

The CORE.3 platform operates with an open-access model. Projects have the ability to passively track their scores, which are based on publicly available data, or can take a more active role by verifying inputs and addressing identified risks. Risk profiles along with submission tools are accessible at app.CORE3.io.

About HAI Group

HAI Group is a global holding company within the Web3 space, serving as the parent organization for the Hacken ecosystem. Managing a suite of products and services that focus on cybersecurity, risk analysis, and blockchain infrastructure, the company’s portfolio includes Hacken, HackenProof, and CER.live.

CORE.3 functions as an independent analytics platform that provides a data-driven Probability of Loss framework to assess risk in Web3 projects. Importantly, the platform is not a ratings agency, and its metrics should not be considered as investment advice.