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.

Last updated 22 days ago

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.

Last updated 22 days ago