The fall of Lehman Brothers and the Global Financial Crisis of 2008 revealed the moral hazard inherent in swap derivatives engineered by centralized institutions. RISKX aims to solve these issues by combining AI and blockchain technology, to power an ecosystem that enables individuals and institutions to manage risk in peer to peer networks, mitigating zero sum game, greed, and moral hazard through social accountability, transparency and portfolio optimization.
RISKX is a decentralized P2P risk management ecosystem that automates the risk management process for individuals and firms. The RISKX platform enables users to build profiles by importing financial data and reports from other blockchain partners and financial services, as well as social media integration. These profiles are analyzed by AI modules that determine the profiles Reputation – a measure of the users credit strength and trustworthiness, made immutable on the blockchain.
This reputation enables users to gain access to different tranches of credit quality, so that they can customize and deploy swap contracts with similar credit-worthy counter-parties. This in turn incentivizes financial responsibility and social accountability within the RISKX ecosystem. Whenever a contract becomes harmful to the RISKX ecosystem it is automatically rewritten and the users are paired with more appropriate counter-parties that can better advantage each other.
Swap contract optimization is achieved by pairing users with counter-parties that provide the highest Positive Quality Spread Differentials – a measure of the optimal savings achieved through the most beneficial swap contracts. These positive QSD’s provide rewards back to the platforms users in the form of RISKX tokens that can be traded in the RISKX marketplace, or used to access premium features and hire portfolio managers through the platforms bounty program.
The ultimate vision for RISKX is to develop an ecosystem where users can distribute any type of interest or non-interest bearing risk denominated in cryptocurrencies, currencies, commodities, and other assets. RISKX will bring harmony and stability to the market through AI and blockchain by enhancing contract optimization, increasing transparency and ensuring accountability.