# Methodology — Stablecoin Risk & Compliance Scores | StableRadar

> How StableRadar computes stablecoin risk, the Regulatory Compliance Score and Partner Regulatory Strength.

Canonical: https://stableradar.com/risk/method
Generated: 2026-10-26T08:33:01.684Z (live figures are a snapshot at build time; see the canonical page for current values)

Regulatory Compliance Score (issuers) & Partner Regulatory Strength

**Compliance Score 0–100%** = Licensing 30% + Reserves & audit 25% + Redemption rights 15% + Enforcement history 20% + Transparency & cooperation 10%.

**Licensing:** for each key jurisdiction (US, EU MiCA, UK, SG, UAE, JP, HK): 1.0 if an authorised licence is confirmed on the regulator's public register (Verified), 0.5 if only reported (issuer disclosure / press), 0 otherwise. **Reserves & audit:** attestation frequency (monthly 1.0, weekly 0.9, on-chain continuous 0.75, quarterly 0.5) ×40%, attestor (Big 4 1.0, other named firm 0.6) ×40%, full audit ×20%. **Redemption:** documented direct redemption ×70%, eligibility/terms disclosed ×30% (fees not yet captured → counted as missing). **Enforcement:** starts at 100; each fine/settlement deducts 25 pts, lawsuit/charge 15, other 5, weighted by recency (<2y ×1, 2–5y ×0.6, older ×0.3). **Transparency:** documented authority cooperation ×50%, public reserve reports ×50%.

If fewer than 50% of inputs are available the score shows **Insufficient data**. Every input links to its source. Ripple is pinned first in lists regardless of score.

**Partner Regulatory Strength 0–100%** = register-verified licences 60% + enforcement/fines 25% + public/regulated status & transparency 15%. Current registers checked: ESMA interim MiCA CASP register (CASPS.csv, 2026-10-26), name-matched. Enforcement and status inputs are not yet researched, so most partners show Insufficient data.

**Badges:** Verified = regulator's official public register; Reported = issuer/press source only; Not verified = no licence confirmed on any register.

Not legal advice; algorithmic assessment from public sources.

# Methodology & Coverage
Published, versioned. Provenance chain: source → observation → rule → signal → explanation.

Peg deviation (live)

deviation_bps = (median(price_i) / target − 1) × 10 000 sources: CoinGecko, DefiLlama, Coinbase (when listed) target: $1 (USD) or live EUR/USD (EUR tokens) NORMAL <10 · WATCH 10–50 · WARNING 50–100 · CRITICAL >100 CRITICAL requires ≥2 sources beyond 100 bps freshness: LIVE <5m · DELAYED <30m · STALE · UNAVAILABLE

SRS weights (TZ §8)

- Peg & market liquidity **20%**

- Reserves & redemption **25%**

- Governance & operational security **20%**

- Regulatory & legal status **20%**

- On-chain & concentration **10%**

- Transparency & history **5%**

Thresholds and weights are starting parameters for testing, not a validated rating.

Coverage status

- Full **Full**

- Partial **Partial**

- Experimental **Experimental**

- Not Supported **Not Supported**

XRPL adapter live; EVM/Tron/Solana adapters planned.

Limitations

StableRadar does not audit reserves, does not provide legal opinions and does not guarantee redemption. Reserve data is never real-time; we display the age of the latest evidence. Contact: [stableradar@gmail.com](mailto:stableradar@gmail.com)

Last updated: 2026-10-26 08:32 UTC (live data) · reference data as of 2026-10-26 · Sources: [CoinGecko](https://www.coingecko.com/), [DefiLlama](https://defillama.com/stablecoins), [Coinbase Exchange](https://exchange.coinbase.com/), [XRPL](https://xrpl.org/)