This is the V2 risk-score methodology — the 0–100 composite that the V3 vault surface maps to a letter grade. For the V3 framework (seven weighted categories, composite letter grade, criteria taxonomy) see Vault Risk V3. The 0–100 score here is the same value V3 reports as composite.score.

How it works: Every vault gets a 0–100 composite risk score (0 = safe, 100 = critical). It’s built from ~20 sub-scores, each weighted by importance. Additionally, additive penalties and hard state floors can force the score higher for binary danger conditions. A higher score means a riskier vault.

Every number in the score can be traced back to a specific signal. The API exposes the full sub-score breakdown so we can tell a user “this vault scores 78/100 because redemptions are currently closed and the admin key is an EOA with no timelock” — not just a number.

Letter grade

The 0–100 composite maps to a letter grade via the standard grading_scheme=v2 scale (lower risk = better grade):

Grade	Risk score	Grade	Risk score
A+	0–5	C+	47–56
A	6–12	C	57–66
A-	13–20	C-	67–77
B+	21–28	D	78–88
B	29–37	F	89–100
B-	38–46

See the full grading contract.

Outputs

Output	What it means
Composite Score (0–100)	Overall risk — weighted sum of all sub-scores + penalties + floors
Tier	`low` / `medium` / `high` / `critical` — bucketed label for the composite
listing_verdict	`safe_to_list` / `caution` / `review_required` / `do_not_list` — actionable recommendation
withdrawal_state	`normal` / `constrained` / `illiquid` / `locked` / `blocked` — current exit condition
liquidity_tier	`open` / `mild_stress` / `constrained` / `illiquid` / `locked` — named label for the liquidity sub-score
governance_score	Separate sub-score for governance quality specifically (centralization + upgrade + code + webacy code)
pct_tvl_withdrawable	What % of the vault’s TVL can actually be withdrawn right now
solvency_risk	Weighted sub-score for the “vault is losing money” signals
liquidity_risk	Weighted sub-score for the “users can’t get out” signals

Sub-scores

The weight shows how much it contributes to the final composite.

Contract and Code Quality

Signal	Weight	What it measures
Protocol Risk	15%	Webacy’s vault protocol-risk classification, Negligible → Blacklisted. The single largest weight because it captures protocol-level risk independent of the vault’s own code.
Upgrade Risk	10%	Is the contract a proxy? Can it be upgraded? A vault that can be upgraded without a timelock is a rug vector. Timelocks reduce this score (7-day timelock = gold standard).
Code Risk	10%	Is the source code verified on-chain? How many audits does it have? Unverified = +65 sub-score because you can’t audit what you can’t read.
Webacy Code Risk	2%	Webacy’s own vulnerability scan findings — reentrancy, unchecked calls, malicious external calls.

Governance and Control

Signal	Weight	What it measures
Centralization Risk	12%	Who controls the vault? EOA owner (single key) = bad. Multisig = better. A 1-of-3 multisig is still weak — we score both the threshold (how many keys needed) and the ratio (how easy quorum is to reach). Also: does a single EOA hold the strategy manager role?
Strategy Risk	5%	Does the vault use external strategies or leverage? More strategies = more attack surface.
Asset Risk	5%	What’s the underlying stablecoin? USDC/USDT/DAI = low. Algorithmic or niche stablecoins (USR, AUSD) = high.

Liquidity and Exit

Signal	Weight	What it measures
Closed Liquidity	12%	Are deposits or redemptions currently paused/closed? Redemption closed = can’t exit = +60 sub-score. One of the most impactful signals.
Utilization Rate	10%	For lending vaults: what % of the pool is currently borrowed? Above 95% = users can’t withdraw. The curve is nonlinear — 98% scores 88/100, 100% scores 97/100.
Looping Risk	4%	Recursive lending (borrowing to re-deposit). Amplifies liquidation cascades. 80%+ looping = 70+ sub-score.
Depeg Risk	5%	Is the vault’s share price below $1? For stablecoins, any deviation is a red flag. Near-zero = vault collapsed.

Performance and Market Behavior

Signal	Weight	What it measures
TVL Outflow	2%	Has the vault lost significant TVL recently? 50%+ drop = 100 sub-score. Signals loss of confidence.
Size Risk	2%	Small TVL vaults (<$50k) are riskier, less battle-tested, easier to manipulate.
Maturity	3%	How old is the vault? Brand new (<5 weeks) = +40 sub-score. Time in production reduces risk.

How these sub-scores map to V3 categories

In V3, you’ll see these V2 sub-scores regrouped into seven weighted risk categories. The mapping below is a conceptual correspondence — it shows where each signal appears, not the exact scoring wiring (the V3 composite is computed from its own framework, not by re-bucketing these V2 weights).

V2 sub-score	V3 category
Protocol Risk, Upgrade Risk, Code Risk, Webacy Code Risk, Maturity	`smart_contract`
Centralization Risk, timelock & pause controls, admin-change monitoring	`operational_governance`
Asset Risk, Depeg Risk, Oracle quality	`asset_collateral`
Closed Liquidity, Utilization Rate, Looping Risk, TVL Outflow, Size Risk	`market_liquidity`
Strategy Risk	`counterparty`

hack_exploit_history is driven by the additive penalties and risk flags below (for example, recent exploit, ownership transfer, repeated pausing) rather than a single weighted sub-score. chain_infrastructure is reserved and carries no V2 signal today. For details on what each V3 category measures and representative criteria, see What each category measures.

Oracle Type Quality

The oracle sub-score uses a weakest-link model — the worst oracle type found across all of the vault’s underlying markets sets the floor. Oracle quality is scored by type:

Oracle Type	Base Score	Why
Major decentralized oracle networks	8	Battle-tested, multi-source, heartbeat monitoring
wstETH / Pendle PT wrapped oracles	18	Derived from rebase math — manipulation surface if underlying is thin
MorphoOracle / UrdOracle (single-source)	28	Single price source, no cross-reference
Unknown / unverified	40	Can’t assess what isn’t disclosed

Additionally: any collateral token with <$5M daily trading volume raises the oracle sub-score floor to 55 (thin_collateral_market flag). Below that volume threshold, a well-capitalised attacker can move the price enough to overborrow against inflated collateral — the pattern behind the Mango Markets and Cream Finance exploits.

Additive Penalties

These fire for specific dangerous combinations or events and add directly on top of the weighted composite. Multiple conditions stack independently.

Interaction Penalties (Compound Risk)

Condition	Penalty
High utilization (>95%) + single concentrated borrower	+10
High utilization (>95%) + single concentrated depositor (holds ≥50% of shares)	+10
High utilization + major TVL outflow happening simultaneously	+10
Upgradeable contract + weak multisig (threshold ≤ 2)	+8
Pause function present + EOA control + no meaningful timelock	+8

Governance Behavior Penalties (on-chain activity)

Condition	Penalty
Recent contract upgrade in last 30 days	+12
Recent contract upgrade in last 30 days + zero audits on record	+32 (stacked)
Repeated pausing (3+ times in 90 days)	+10
1–2 pause events in 90 days	+5
Ownership transfer in last 90 days	+8

State & Structural Penalties

Condition	Penalty
Dormant vault (very low activity, not new/bot-run)	+25
Market concentration >80% in single market	+10
Bad debt in underlying lending markets	+15
Tight liquidation buffer (<5%)	+10
Exit liquidity <5% of TVL	+10
Webacy contract risk flagged	+15
Webacy deployer risk flagged	+10
Oracle gap >3x (on-chain price vs market price)	+15
Collateral depegged >20%	+20
ERC-4626 vault used as live price oracle in lending market	+15

Yield & Liquidity Trap Penalties

Condition	Penalty
Reward-dependent yield >90% of APY from emissions	+12
Reward-dependent yield >70% of APY from emissions	+8
Reward-dependent yield >50% of APY from emissions	+4
Yield trap: vault locked/illiquid + reward-dependent APY >70%	+15
Shared collateral exposure: flagged collateral token shared across multiple vaults	+10

Hard State Floors (binary minimums)

These ensure a catastrophic condition can never be masked by a low smooth score. The composite cannot go below these values when the condition is active.

Condition	Floor
Redemptions closed	75
Redemptions closed + utilization >95%	80
Active depeg (share price < 0.99)	70
Oracle risk >60 + liquidation proximity >40	70
Exchange rate spike >2% (donation attack pattern)	70
Dormant vault	65
Exchange rate crash >1% (exploit in progress / collateral collapse)	65
Yield trap active	65
Exit illiquid (<2% withdrawable)	60
listing_verdict = do_not_list	75 (tier = critical)
listing_verdict = review_required	50 (tier = high)

Computed-but-Zeroed Signals

These are calculated and exposed in the API payload but don’t add to the weighted composite — they feed into additive penalties or are surfaced directly for consumers.

Signal	What it is
Borrower Concentration	Top borrower’s share of total borrow across the vault’s underlying lending markets. If one whale controls 80% of borrowing, the vault’s liquidity is hostage to them.
Depositor Concentration	Top depositor’s share of vault shares. A single whale exiting triggers a utilization spike that traps everyone else.
Governance Behavior	Recent on-chain governance events: contract upgrades (30d), pause events (90d), ownership transfers (90d). Structure-based scoring alone misses behavioral patterns.
Yield Sustainability	Ratio of emissions-based APY to total APY. >70% = yield collapses when rewards end, causing TVL flight and utilization spike.
Exchange Rate Velocity	Rate of change in vault share price since last checkpoint. Spike >2% = donation attack pattern (Venus wUSDM). Crash >1% = exploit in progress or collateral collapse.
ERC-4626 Oracle Risk	Whether the vault’s convertToAssets() function is being used as a live price oracle in a lending market. Direct asset donations inflate this rate without minting shares — enabling overborrowing against inflated collateral.
Oracle Gap	Worst ratio between on-chain oracle price and real market price found across collateral tokens. 9x gap = oracle is stale or manipulable.
Exit Liquidity Ratio	What fraction of TVL is withdrawable right now vs total deposited.
Market Liquidity	Absolute USD liquidity available in the underlying lending markets.
Market Concentration	What % of TVL is in the single largest lending market.
Bad Debt	Realized losses in the underlying lending markets that won’t be recovered.
Momentum	1-month vs 3-month CAGR divergence — is yield declining recently?
Flow Risk	Net capital flows — large outflows signal institutional confidence loss.
Fee Drain	Management + performance fees. >2% management fee = meaningful yield erosion.
Volatility	Share price volatility over 3 months.
Drawdown	Worst historical drawdown from peak.
Return Loss	Lifetime or annualized return negative = vault is losing user capital.

Risk Flags

Flags are surfaced in the API alongside the score. Each maps to one or more of the conditions above. Blocking flags (force do_not_list): unverified, redemption_closed, dormant Non-blocking flags: depeg · high_looping_exposure · no_audits · eoa_owner · pause_capable · upgradeable · negative_return · lockup_7d · withdrawal_delay · low_tvl · new_vault · deposit_closed · inactive · subvault · thin_collateral_market · concentrated_borrower · concentrated_depositor · recent_upgrade · unaudited_upgrade · repeated_pausing · ownership_transfer · exchange_rate_spike · exchange_rate_crash · erc4626_donation_risk · reward_dependent_yield · yield_trap · emergency_deposit_cap · shared_collateral_exposure

Getting Started

Risk Ratings, Scoring, and Documentation

SDK

Integrations

Essentials

Glossary

Vault Ratings

Letter grade

Outputs

Sub-scores

Contract and Code Quality

Governance and Control

Liquidity and Exit

Performance and Market Behavior

How these sub-scores map to V3 categories

Oracle Type Quality

Additive Penalties

Interaction Penalties (Compound Risk)

Governance Behavior Penalties (on-chain activity)

State & Structural Penalties

Yield & Liquidity Trap Penalties

Hard State Floors (binary minimums)

Computed-but-Zeroed Signals

Risk Flags

​Letter grade

​Outputs

​Sub-scores

​Contract and Code Quality

​Governance and Control

​Liquidity and Exit

​Performance and Market Behavior

​How these sub-scores map to V3 categories

​Oracle Type Quality

​Additive Penalties

​Interaction Penalties (Compound Risk)

​Governance Behavior Penalties (on-chain activity)

​State & Structural Penalties

​Yield & Liquidity Trap Penalties

​Hard State Floors (binary minimums)

​Computed-but-Zeroed Signals

​Risk Flags

Letter grade

Outputs

Sub-scores

Contract and Code Quality

Governance and Control

Liquidity and Exit

Performance and Market Behavior

How these sub-scores map to V3 categories

Oracle Type Quality

Additive Penalties

Interaction Penalties (Compound Risk)

Governance Behavior Penalties (on-chain activity)

State & Structural Penalties

Yield & Liquidity Trap Penalties

Hard State Floors (binary minimums)

Computed-but-Zeroed Signals

Risk Flags