Navigating Crypto Risks with Precision

Expert-led solutions for managing and mitigating crypto risks

Introducing Ourselves!

With decades of experience in risk management and digital assets, we’ve built cutting-edge solutions for institutional traders. Now, we’re bringing that expertise to the market, empowering you with the tools to navigate the complexities of digital asset risk with confidence.

Solutions

Easy to use solutions for managing your crypto risk needs.

Models and Analytics

Advanced models for managing portfolio, exchange, and counterparty risk.

Custom Solutions

Address your unique crypto risk challenges.

Research

Cutting-edge research to stay ahead in the crypto risk landscape.

Quantifying Risk with Precision

Discover your crypto portfolio's risk with advanced VaR models and Expected Loss insights. Make confident, data-driven decisions—start optimising your risk strategy today!

You can try out our solution either via api or directly on our site. Follow the below to test it out for your portfolio today. Both current and historical VaR as well as portfolio returns.

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Insights and Innovation: Our Blogs & Research

Delve into the forefront of crypto risk management with our expertly crafted content. From pioneering research on counterparty risk to our proprietary exchange risk model and framework, we provide actionable insights to tackle the challenges of digital asset markets. Explore our deep dives into Value at Risk (VaR) modelling, factor-based approaches, and strategies for building resilient portfolios. Whether you're a trader, institutional investor, or risk professional, our blogs and research are here to inform and empower

Are centralised cryptocurrency exchanges safe to use? How can we quantify the risk of a platform defaulting? In the world of digital assets, counterparty risk is a critical yet under-explored area. This methodology introduces a Probability of Default (PD) model, a comprehensive framework designed to evaluate the creditworthiness of centralised crypto exchanges.

This blog post dives into the data-driven methodology behind the model. Drawing on publicly available data from platforms like CryptoCompare and CoinGecko, as well as cybersecurity certifications and anti-money laundering indices, the model identifies key predictors of exchange default.

Factors such as liquidity, age, proof of funds, and KYC requirements are analysed through advanced statistical techniques to deliver actionable insights.

Discover how this model achieves an 80% accuracy ratio in distinguishing between solvent and defaulted exchanges. Learn about its future potential to incorporate emerging variables like native tokens and detailed proof-of-liabilities data. Whether you're a risk manager, investor, or industry enthusiast, this post sheds light on a pivotal innovation in safeguarding crypto investments.

As the crypto market evolves into a cornerstone of modern finance, the need to understand and manage its unique risks has never been greater. Cryptocurrencies bring unparalleled opportunities, but their volatility and complex market dynamics demand innovative solutions to protect portfolios and maximise returns. That is why we seek to estimate a Multi-Factor Risk Model — a game-changing framework designed to decode the intricate forces driving crypto asset performance.

We don't seek to simply replicate the factor-based approaches used in equities and fixed-income markets; rather to redefine the model for the digital asset space. By leveraging factors like market size, value, momentum, liquidity, and macroeconomic variables, it unveils the hidden drivers behind crypto asset returns. Whether you're navigating 24/7 trading, adapting to shifting market structures, or managing exposure to digital assets. This model equips you with the insights needed to thrive in a volatile and speculative environment.

More than just a tool, the Multi-Factor Risk Model is a lifeline for investors and risk managers aiming to optimise asset allocation, stress-test portfolios, and mitigate losses. Curious about how it works and why it’s essential in today’s financial landscape? Read on and discover how this robust framework empowers smarter decision-making in the ever-changing world of digital assets.

Understanding and managing portfolio risk is at the heart of effective investment strategies, and Value at Risk (VaR) remains one of the most widely used tools to quantify potential losses. This study dives deep into the nuances of VaR estimation, comparing four methodologies to identify the most accurate and insightful approach for capturing portfolio risk.

Central to this analysis is the precision with which portfolio variance and standard deviation are calculated, ensuring the covariance between assets is appropriately reflected. The study evaluates four powerful VaR estimation methods: the Normal distribution method, the Skewed Student’s t-distribution method, the Cornish-Fisher expansion, and Monte Carlo simulation. Each technique brings unique strengths, but it’s the Cornish-Fisher expansion that proves to be the most effective.

By capturing skewness, kurtosis, and the complex interplay of asset relationships, the Cornish-Fisher method delivers superior accuracy in modelling tail risks. Backtesting results validate its ability to incorporate real-world characteristics of return distributions, offering a robust solution for investors and risk managers alike.

Curious about how these methodologies stack up and why the Cornish-Fisher approach stands out? Read the full article to explore how advanced VaR estimation can redefine portfolio risk management.

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Are You Ready to Accelerate Your Business?

Let’s Collaborate on Custom Risk Solutions

In today’s complex financial landscape, off-the-shelf risk models often fall short of addressing unique challenges.

Whether you’re navigating portfolio risk, stress testing, or developing innovative metrics for emerging asset classes, a tailored approach can make all the difference.

We specialise in building bespoke risk solutions that align with your specific needs. From crafting advanced Value at Risk (VaR) models to designing multi-factor frameworks for cutting-edge asset management, our expertise is rooted in delivering actionable insights and robust methodologies.

Ready to elevate your risk management strategies? Let’s discuss how we can collaborate on a custom project to meet your goals. Get in touch today to explore the possibilities!

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Navigating Crypto Risks with Precision

Introducing Ourselves!

Solutions

Quantifying Risk with Precision

Are You Ready to Accelerate Your Business?

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