Agio Ratings

In the dynamic world of crypto, staying ahead of risk is crucial. Agio Ratings introduces Anomaly Alerts, a powerful tool designed to detect sharp, unexpected shifts in counterparties' risk profiles. Our advanced algorithms flag significant deviations in balances and flows, providing meaningful alerts that help you navigate the noise of the crypto market. 🔍 𝐖𝐡𝐲 𝐈𝐭 𝐌𝐚𝐭𝐭𝐞𝐫𝐬: - Identifying real signals amidst market noise. - Making smarter risk decisions, whether reducing or increasing exposure based on anomaly insights. 📈 𝐖𝐡𝐚𝐭'𝐬 𝐍𝐞𝐰 𝐢𝐧 𝐀𝐧𝐨𝐦𝐚𝐥𝐲 𝐀𝐥𝐞𝐫𝐭𝐬: - Expanded Coverage: We increased the entities we monitor from 30 to 80 and the type of entities: centralized exchanges, stablecoin issuers, lenders, exchange traded fund product(ETF), and decentralized exchanges (DEXs). - More Risk Factors: Now tracking on-chain balances and flows for comprehensive risk analysis. - Enhanced User Experience: ▪️ High vs. Low Severity Alerts for better prioritization. ▪️ Dropdown view for multiple risk factors, with hourly updates post-alert. Ready to take smarter risks? Visit agioratings.io

We're thrilled to announce our participation in Bitcoin 2024 in Nashville from July 25-27th! 🚀 We'll be joining 20,000 attendees, including decision-makers, investors and thought leaders, to showcase how our ratings and alerts provide real-time insights into exchange risk. If you're attending and are interested in managing crypto risk, make sure to connect with me and Austin Gongora, our Lead Blockchain Engineer. I look forward to seeing you there! —  🔗 Learn more about the event here: https://lnkd.in/gPUriihd

I am back from EthCC in Brussels, where we had an opportunity to have thoughtful and frank conversations with managers deploying capital. Here are our top 3 takeaways: 💭 The scars of FTX are fading, and financial risk is slipping the priority list 🗨️ Much of the current risk focus lies in evaluating governance risk for protocols; monitoring validator behavior; and making KYC compliance more efficient. While these areas are important, there is a noticeable gap in addressing financial risk directly. 💭 Credit is still constrained, despite improvements in measuring counterparty risk 🗨️ We are now able to access more data than ever before, both public and sensitive client data. The time has come to build tools on top of these resources, driving efficient collateral allocation and enhancing risk management strategies. 💭 Enthusiasm to move away from what can be solved with blockchain, and toward what problems need solving 🗨️ One big area of opportunity is leveraging on-chain analysis to mitigate losses from defaults. By leveraging smart contracts, blockchain has the potential to mitigate these losses significantly, just as it has reduced trading fees. Excited to see what the future holds!

We are excited to attend one of the biggest Web 3 events: the Ethereum Community Conference (EthCC) in Brussels on 8-11th July 🚀 We'll be joining industry leaders to demonstrate how our ratings and alerts provide a real-time map for exchange risk. If you're attending and want to learn more about our crypto risk management solution, be sure to connect with Ana De Sousa and Andrei Ionescu.

We're excited to announce the release of Version 3 of our statistical rating model. Our models analyze publicly observable data - such as on-chain reserves, trading volumes, and regulatory licenses - to predict the probability of default for centralized exchanges. Since our 2022 launch, we've worked tirelessly to enhance their predictive power and coverage of our models. Key Improvements in V3: 🔍 Enhanced Predictive Accuracy: Trained on twice as many defaults, V3's predictive power and correlation with observable market forecasts (such as Coinbase’s stock price) is the highest yet. 📊 Deeper Analysis: V3 introduces new variables that capture relevant default risk factors such as operating leverage, growth rate, and macro conditions. 🌐 Broader Coverage: with V3, we can now cover an additional 15 centralized exchanges, bringing our total coverage to 45 venues. Agio Ratings continues to lead the way in providing robust, quantitative insights to help firms control their counterparty risk with confidence. Ready to stay ahead of the curve? Discover more about our solutions 👉 agioratings.io – Ps. The chart below shows how V3’s default forecast has tracked Coinbase’s equity price over time with remarkable accuracy. The 1-year probability of default measured by our Statistical Ratings started at around 4.0% and then began to improve towards the end of 2023, eventually improving to 2.5%. 🔗 Read the full article here: https://lnkd.in/ec_q_SFC

Crypto CFOs, we’ve got your back. Ensuring long-term success in this asset class requires an accurate and up-to-date view of risk. Agio Ratings is  the solution for every team that values professional risk management We’re helping firms such as Portofino Technologies, Auros, and FalconX manage their counterparty risk with confidence by providing: 📊 Advanced modeling 🚨 Anomaly alerts 🔄 Continuous risk monitoring Now, the challenge may be to get the internal buy-in? Scroll below for our step-by-step guide to help alleviate internal concerns and facilitate implementation. 👇

📢 Exciting News! Our CEO, Ana De Sousa, will be a panelist at Collision Conf Toronto this week. Joining her are the fantastic Rashmi Gopinath at B Capital Group and Ed Zitron at EZPR. Together, they will discuss key components of Web3 infrastructure, including  ✅ decentralized network ✅ blockchain technology ✅ smart contracts Event Details: 🗓️ Date: Wednesday, 19 June ⏰ Time: 15:00 - 15:25 📍 Location: Stage 8 at Collision  🗣️ Panel: The Foundations of Web3 Infrastructure Don’t miss out! Check out the details here 👉 https://lnkd.in/gEYmhdc3 See you there!

Catch our CEO Ana De Sousa and lead blockchain engineer Austin Gongora as they showcase how the industry's leading risk teams use Agio #Consensus2024 #CryptoRisk #

Agio Ratings' CEO Ana De Sousa will be at the #DigiAssets conference in London next week. Book a demo today to see the risk platform that top crypto teams use to price risk intelligently: https://lnkd.in/gP6AUEeR

🚨 Position Replication Risk and the Limits of Tripartite Agreements🚨 More crypto asset managers today are leveraging tripartite agreements to mitigate exchange risk. These agreements can help to reduce some losses, but they don’t address a potentially more critical risk: position replication risk (PRR). 🔍 PRR occurs when an investor’s counterparty defaults, and they lose a critical position which they believed was secure either through hedging or strategic portfolio allocation. The investor must then replicate the lost position in a volatile market. 📉 PRR can represent a far higher loss than the variation margin that a custodian in a tripartite agreement manages. Market volatility tends to spike following news of a significant default, compounding the difficulty and cost of replicating positions. In our simulation, a firm with a $50M position at a defaulted exchange loses approximately $700,000 to variation margin risk and $2.4 million to position replication risk. 🛡️ Managing PRR requires monitoring the default risks of major counterparties, even if you rely on a custodian for managing exposure. Luckily, crypto asset managers now have Agio Ratings at their disposal. We specialize in modeling default probabilities and have been tracking default risk across 30+ exchanges since July 2022. Book a demo with us today to learn more. https://lnkd.in/gUxjdWDX #RiskManagement #CryptoTrading #AssetManagement #TripartiteAgreements #FinancialRisk #AgioRatings