Kaizen Scoring System

The Kaizen Scoring System is the core intelligence engine that evaluates Web3 projects and provides actionable risk insights. Our proprietary algorithm combines multiple data sources and analytical methods to generate comprehensive security scores.

Score Range and Categories

Primary Score Range

• Score Scale: 0-100 (integer values)

• Scoring Direction: Higher scores indicate lower risk

• Update Frequency: Real-time with 30-second intervals for active monitoring

Score Categories

Score Range	Category	Risk Level	Description
90-100	Excellent	Very Low Risk	Highly secure projects with robust fundamentals
75-89	Good	Low Risk	Solid projects with minor concerns
60-74	Moderate	Medium Risk	Projects with notable risks requiring caution
40-59	Poor	High Risk	Projects with significant red flags
20-39	Very Poor	Very High Risk	Projects with severe security concerns
0-19	Critical	Extreme Risk	Likely scams, rug pulls, or honeypots

Sub-Score Components

Each primary score is composed of weighted sub-scores:

Primary Score = (
  Liquidity Score × 0.25 +
  Code Quality Score × 0.20 +
  Social Intelligence Score × 0.15 +
  Ownership Score × 0.15 +
  Developer Activity Score × 0.10 +
  Market Behavior Score × 0.10 +
  Security Audit Score × 0.05
)

Risk Classification

Classification Methodology

Green Zone (75-100)

• Verified contract source code

• Locked or burned liquidity (>6 months)

• Active and transparent development team

• No major red flags detected

• Strong community engagement

Yellow Zone (40-74)

• Some verification missing

• Moderate liquidity concerns

• Limited development transparency

• Minor technical issues detected

• Mixed social sentiment

Red Zone (0-39)

• Unverified or suspicious code

• Unlocked liquidity or low liquidity

• Anonymous or inactive developers

• Multiple red flags present

• Negative social indicators

Risk Factors Hierarchy

Critical Risk Factors (Immediate red flags)

• Honeypot contracts detected

• Unlimited minting functions

• Hidden backdoors in code

• Suspicious fund movements

• Known scammer associations

Major Risk Factors

• Unverified smart contracts

• Low liquidity (<$10k)

• Anonymous development team

• Rapid token distribution

• Suspicious social activity

Minor Risk Factors

• Recent project launch (<7 days)

• Limited social presence

• Low trading volume

• Basic tokenomics

• Minimal documentation

Confidence Levels

Confidence Scoring Methodology

Confidence levels indicate the reliability of our scoring based on available data and analysis depth.

Confidence	Range	Description	Data Requirements
Very High	95-100%	Comprehensive analysis with multiple data sources	48+ hours of monitoring, verified contracts, social data
High	85-94%	Solid analysis with good data coverage	24+ hours of monitoring, most data sources available
Medium	70-84%	Adequate analysis with some limitations	12+ hours of monitoring, basic data available
Low	50-69%	Limited analysis due to data constraints	<12 hours of monitoring, minimal data
Very Low	<50%	Insufficient data for reliable scoring	New project, limited information

Confidence Calculation Formula

Confidence = (
  Data_Completeness × 0.30 +
  Analysis_Depth × 0.25 +
  Source_Reliability × 0.20 +
  Time_Coverage × 0.15 +
  Verification_Status × 0.10
) × 100

Score Interpretation Guidelines

For End Users

Score 90-100: Proceed with Confidence

• Generally safe for investment consideration

• Continue monitoring for any changes

• Review specific risk factors for complete picture

Score 75-89: Proceed with Caution

• Acceptable risk level for experienced users

• Monitor closely for developments

• Consider smaller position sizes

Score 60-74: Exercise Extreme Caution

• Suitable only for risk-tolerant investors

• Requires continuous monitoring

• Consider waiting for improvements

Score 40-59: High Risk - Not Recommended

• Significant concerns identified

• Only for speculative trading

• Use minimal capital allocation

Score 0-39: Avoid - Extreme Risk

• Multiple critical issues detected

• High probability of loss

• Not recommended under any circumstances

For Developers and Auditors

Technical Indicators to Monitor:

• Contract verification status

• Ownership concentration ratios

• Liquidity lock mechanisms

• Code complexity metrics

• External dependency risks

Social Indicators to Track:

• Community engagement levels

• Developer communication frequency

• Social sentiment trends

• Influencer involvement patterns

• Manipulation detection signals