4. Risk Monitoring & Security Framework

Synapse AI implements a multi-layered risk assessment system that continuously monitors protocol security, governance changes, and liquidity health.

• Real-time anomaly detection: The AI employs Bayesian inference models and anomaly detection techniques such as Isolation Forests to identify suspicious on-chain activity.

• Dynamic risk scoring: Using Markov decision processes (MDP) and Monte Carlo simulations, the AI assigns risk-adjusted scores to DeFi protocols, ensuring capital is allocated to high-security, sustainable yield sources.

• Automated exit strategies: If risk thresholds are exceeded (e.g., smart contract vulnerabilities, governance attacks, or liquidity collapses), the AI executes immediate withdrawal protocols, protecting user assets from unforeseen failures.