Glossary

Key terms used across WalletShield wallet risk checks, reports, and monitoring alerts.

Counterparty Risk

The risk that the other party in a transaction (the payer) has a wallet associated with suspicious, high-risk, or sanctioned activity. In crypto payments, counterparty risk can lead to account freezes, compliance reviews, and asset seizure.

Wallet Check / Wallet Risk Check

A pre-payment screening process where a wallet address is analyzed against public blockchain data to produce a risk score, risk level, and key signals. Used by merchants and payment receivers to assess payer risk before accepting funds.

Risk Score

A numerical score from 0 to 100 assigned to a wallet address, where higher scores indicate higher risk. The score is calculated from multiple weighted factors including blacklist exposure, fund flow patterns, interaction risk, and activity anomalies.

Risk Level

A categorical classification derived from the risk score: Low, Medium, High, or Critical. Risk levels help users quickly understand the severity of detected risk signals and decide on appropriate actions.

Risk Signals

Specific indicators detected during a wallet risk check, such as blacklist events, large outflows, high-risk interactions, or abnormal activity patterns. Each signal includes a description, severity, and supporting onchain evidence.

Assessment State

The lifecycle state of a risk assessment: Clean (no risk found), Warning (risk signals present), Confirmed (verified through multiple sources), Resolved (risk mitigated), or Expired (data outdated).

Onchain Data

Publicly available information recorded on a blockchain, including transaction records, token transfers, smart contract interactions, and address balances. WalletShield exclusively uses onchain data for risk assessments.

Ethereum (ETH)

A decentralized blockchain platform supporting smart contracts and token standards (ERC-20). One of the most widely used chains for USDT payments. WalletShield supports ETH address risk checks.

TRON (TRX)

A blockchain platform with high throughput and low fees, popular for USDT (TRC-20) transfers. WalletShield supports TRON address risk checks.

BNB Smart Chain (BSC)

A blockchain compatible with Ethereum (BEP-20 tokens), used for DeFi and payments. WalletShield supports BSC address risk checks.

USDT (Tether)

A stablecoin pegged to the US dollar, widely used for crypto payments and commerce. USDT exists on multiple chains (ERC-20, TRC-20, BEP-20). WalletShield focuses on counterparty risk related to USDT-receiving scenarios.

Blacklist Event

A risk signal triggered when a wallet address is found on a public blacklist or has interacted with addresses flagged by sanctions, law enforcement, or community databases.

Fund Flow Analysis

Analysis of inflow and outflow patterns for a wallet address, including total volume, frequency, counterparty diversity, and potential mixing or layering behavior.

High-Risk Interaction

A transaction or relationship between the target address and an address known to be associated with scams, hacks, sanctions, or other high-risk activity.

Continuous Monitoring

Ongoing tracking of a counterparty wallet address over time. When the address's risk profile changes (e.g., enters high-risk status), alerts are sent through the user's chosen channel (Telegram, Discord, WhatsApp, or LINE).

Risk Alert

A notification sent when a monitored address's risk status changes. Alerts include the updated risk level, triggering signals, and recommended actions. Delivered through Telegram, Discord, WhatsApp, or LINE.

Evidence Report

A downloadable report containing the full risk assessment for a wallet address, including risk score, risk level, signals, onchain evidence, timestamps, and address overview. Suitable for compliance documentation, bank disputes, or platform appeals.

Pre-payment Screening

The practice of checking a payer's wallet risk before accepting a payment or starting a business relationship. Helps merchants avoid receiving funds from high-risk sources.

Address Overview

A summary of key metrics for a wallet address, including balance, total transactions, first and last transaction dates, and inflow/outflow volumes. Provides context for interpreting risk signals.