NFT Risk Calculator
The NFT Risk Calculator evaluates the potential risk associated with tokens on the Hedera network, focusing on the likelihood of a "rug pull" based on specific token properties. The risk calculator generates a comprehensive risk score and risk level by analyzing key factors, such as the Admin Key, Supply Key, and KYC Key. The calculator can be used to assess both existing tokens and those you plan to create, gaining insights into how specific properties may make a collection more or less risky. This helps developers and token creators make informed decisions about token security and governance.
How to Use the NFT Risk Calculator
Select Token Type and Enter Token Details
Start by choosing the type of token you want to evaluate. The application offers an easy-to-use interface that lets you toggle between assessing a new token or an existing token on the Hedera network.
For existing tokens, input the token ID you wish to analyze on the field labeled "Token ID." We'll use the Wild Tigers collection (id: 0.0.6024491) as an example.
Key Factors Evaluated
The key factors evaluated include whether a token has control over its operations through specific keys. For example:
Admin Keys grant control over modifying the token's properties or configurations. If enabled, the admin key significantly influences the risk score since it gives the holder broad control over the token.
Supply Keys control the minting and burning of the token's supply. Tokens with a Supply Key enabled have higher flexibility in adjusting supply but also pose potential risks, as the supply could be manipulated.
KYC Keys determine whether accounts need to be verified (KYC’d) before transacting with the token. A token requiring KYC may indicate stricter control and lower risk but also restricts participation.
This detailed risk factor score table below breaks down the potential vulnerabilities and shows how each key influences the overall risk score.
ADMIN
🔴 200
The ADMIN key can be used to delete the entire collection as they have control over the token’s administration.
WIPE
🔴 200
The WIPE key can be used to delete all tokens within that collection for a specific account.
FREEZE
🟠 50
A collection with a FREEZE key has a moderate risk because it can freeze an account for token transfers.
KYC
🟠 50
The KYC key can mark an account as KYC-approved.
PAUSE
🟠 50
The PAUSE key can pause or unpause a collection. Pausing a collection prevents all transfers of the tokens within the collection.
SUPPLY
🟡 20
The SUPPLY key can change the total supply of a token within a collection and must be set to mint additional tokens.
FEE SCHEDULE
🟡 20
The FEE SCHEDULE key has the ability to change the Collection’s royalty fees after it has been minted. Changing the royalty fees of a Collection will impact all tokens within the Collection (fixed, royalty and fallback).
Understanding the Results
The tool provides two main outputs: a risk score and a risk level. Here's how to interpret these results:
Risk Score
The risk score is a numerical value that indicates the overall potential risk associated with a token.
Lower Scores (0-25): Tokens with low risk, indicating that the settings and properties of the token minimize potential vulnerabilities.
Medium Scores (26-50): Moderate risk, suggesting some factors may need to be reviewed for secure token management.
High Scores (51+): This indicates significant risk, indicating that several factors make the token susceptible to governance issues or potential "rug pulls."
Risk Level
The risk level provides a qualitative assessment (e.g., Low, Medium, or High) to give a more general understanding of the token’s risk profile.
Breakdown of Risk Factors
The calculator provides a detailed breakdown showing how each key and token property contributes to the final risk score.
You can use this breakdown to pinpoint high-risk settings, allowing you to make targeted adjustments to your token configuration.
Using the Results
If you're evaluating an existing token, use the results to inform investment decisions or suggest governance changes.
For new tokens, adjust key settings to achieve a balanced risk level that fits your project’s goals for security and flexibility.
🎉 Congratulations! You've successfully assessed the risk factors for your NFT collection. On the next page, capture a detailed view of your token distribution using the Token Balance Snapshot.
Additional Resources
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