FICO Crypto Credit Score

What is FICO Crypto Credit Score?

Similar to the #Credit Score in Traditional Finance, Crypto Credit Score is the scoring system in DeFi that evaluates the credit risk as well as the ability & possibility to pay the Crypto loan of borrowers (wallet addresses).

How is FICO Crypto Credit Score calculated?

Following the FICO score model, CENTIC credit score varies from 300 to 850. Centric FICO Crypto Credit Score has seven factors as follows:

  • Total asset: The total asset represents the financial strength of accounts.

  • DApp interactions: This parameter reflects the trustworthiness of the wallets. It evaluates the transacting behavior, type and reputation of Dapps they interact with.

  • Transactions with other wallets: To evaluate wallet credit accurately, we examine its interactions with other wallets. Higher wallet credit results from numerous transactions with trustworthy wallets, while transactions with wallets holding poor credit lower the wallet's overall credit score.

  • Liquidation history: This parameter reflects wallet’s credit risk based on assessing age of account along with the number of liquidations and liquidated amount.

  • Loan ratios: Loan ratios (debt ratios) represent the debt position of an account.

  • Investment-to-total-asset ratio: This ratio represents the activeness of the account in the crypto business. It indicates how many percent of the total asset that the account puts into financing activities.

  • Trustworthiness of possessing assets: The credit of a wallet can be seen by the value and trustworthiness of digital assets it holds.

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