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Hedgequarter / Trace

Trace.

Risk decisions that are reproducible, auditable, and defensible.

Trace replaces probabilistic risk models with a deterministic scoring pipeline. Same wallet, same data, same result — every time. Built for compliance teams that must defend their methodology to regulators.

TraceAnalysisReportsDatasetsWallet Address0x7a250d...f049e72HIGH RISKRisk BreakdownSanctionsCriminalMixer Exp.IndirectConfidenceHIGH3 datasets · 2 hopsEvidence4 signals · 12 counterpartiesSHA-256: a3f8c2...9e1dTransaction Graph · 2 HopsTargetExchangeOFACEvidence LogTypeSourceSeverityDistanceOFAC SDN MatchTreasury.govCRITICAL1 hopTornado CashContract RegistryHIGHDirectUnhosted WalletHeuristicMEDIUM2 hops

The compliance problem

Risk tools that cannot explain themselves.

Most on-chain risk platforms produce scores through opaque models — proprietary algorithms that weight signals differently across versions, return inconsistent results for the same address, and offer no methodology disclosure. A compliance officer cannot defend what they cannot reproduce.

When a regulator asks why a wallet was rated high-risk, the answer cannot be 'the model said so.' Regulatory frameworks demand explainability: defined inputs, governed logic, auditable outputs. Probabilistic confidence is not a compliance methodology.

The gap is structural. Current tools were built to detect patterns, not to produce defensible regulatory decisions. Detection is necessary but insufficient — what compliance requires is a governed assessment pipeline where every output traces back to its inputs.

Opaque Model?678254Same wallet, different resultsDeterministic Pipeline727272Same wallet, same result

If the methodology cannot be reproduced, the decision cannot be defended.

Capabilities

Governed risk assessment, not probabilistic guessing.

Deterministic Risk Scoring

Quantitative 0–100 scoring across sanctions, criminal association, mixer exposure, and indirect counterparty risk. Every score is reproducible — the same methodology, applied to the same data, produces the same result.

Scoring weights are governed, not trained. Risk categories are hierarchical: direct sanctions override behavioral signals. For compliance teams, this means every risk decision can be explained to a regulator with full methodology lineage — not just a number, but the governed reasoning that produced it.

72HIGHRisk CategoriesSanctions85CRITICALCriminal Assoc.40MEDIUMMixer Exposure55HIGHIndirect Risk20LOWDeterministic · Engine v1.0 · Snapshot #a3f8c2

Multi-Hop Graph Analysis

Counterparty tracing with configurable depth and hop-distance decay. Understand not just who a wallet transacted with, but the risk profile of their counterparties.

Expand from 0 to 2 hops across the transaction graph. Each hop reduces exposure weight. Tier 1 regulated exchanges act as risk firewalls — exposure beyond KYC-enforced boundaries is not propagated. In practice, this determines whether an investor's wallet has indirect exposure to sanctioned entities — and at what distance that exposure becomes immaterial under your compliance policy.

Hop 0Hop 1Hop 2TargetBinanceOFACGraph MetricsNodes explored47Edges traversed128Counterparties12Max depth2 hopsExchange boundary: Tier 1 firewall

Structural Pattern Detection

Anti-gaming diagnostics: peel chains, dust clustering, wash loops, fan-in/fan-out. Identifies obfuscation attempts that should trigger enhanced due diligence.

Patterns are confidence-scored and diagnostic-only — they inform the analyst, not the risk score. Detection runs independently of scoring to prevent adversarial manipulation of the assessment. These patterns surface in your onboarding review as diagnostic signals — flagging wallets where the transaction structure suggests deliberate obfuscation, warranting manual review before approval.

Anti-Gaming DiagnosticsDiagnostic only · Does not affect scorePeel ChainSequential value reduction82%Dust DilutionLow-value noise injection45%Wash LoopCircular self-transfersNot detectedFan-Out BurstRapid multi-output spread67%

Immutable Reporting

Write-once reports with SHA-256 integrity verification and full audit trail. Every assessment is sealed, versioned, and defensible under regulatory examination.

Reports are WORM-enforced at the database level. Every output includes engine version, dataset snapshot, and cryptographic content hash. When an auditor asks for the risk assessment that cleared an investor eighteen months ago, the exact report — with its methodology version, data snapshot, and cryptographic seal — is retrievable and verifiable.

Risk Assessment ReportReport ID: RPT-2026-0342Issued: 2026-03-24T14:32:00ZSEALEDWORMContent Hashsha256:a3f8c2e1...9b4d7f0eReport SectionsExecutive SummaryScope of AnalysisFindings & SignalsRisk BreakdownConfidence LevelEvidence LogMethodology AnnexEngine v1.0 · Snapshot #a3f8c2 · Supersedes: none

Architecture

A scoring pipeline, not a black box.

Trace decomposes risk assessment into discrete, auditable stages. Each stage has defined inputs, transformation logic, and outputs — governed by versioned specifications rather than opaque models.

The pipeline is deterministic by design. Reproducibility is not a feature — it is a structural guarantee enforced at every layer of the system.

Data IngestionGraph BuilderScoring EngineEntity ResolutionReport Issuance

Integration

Live inside Sentinel today.

Trace is not a standalone forensics tool. It operates as the risk intelligence layer within Sentinel — Hedgequarter's operational control surface. Wallet risk signals from Trace feed directly into investor onboarding workflows, flagging addresses that require enhanced due diligence before they reach compliance review. This integration is live and operational.

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