> For the complete documentation index, see [llms.txt](https://riskguard-1.gitbook.io/riskguard-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://riskguard-1.gitbook.io/riskguard-docs/whitepaper/02-the-solution.md).

# 2. The Solution

> RiskGuard is a risk intelligence layer that sits on top of a user's DeFi portfolio and answers the question existing tools ignore: how dangerous is this, and what should I do?

A user connects their wallet — EVM or Solana — and within seconds RiskGuard detects every active position across supported protocols, scores the risk of each position along four independent dimensions, computes a consolidated portfolio risk score, and generates a plain-language analysis that explains the single biggest risk and recommends a concrete action.

The product is built on three technical pillars, each described in detail in the sections that follow.

## Pillar one — Universal position detection

RiskGuard detects positions by calling smart contracts directly rather than relying on a hardcoded list of known receipt tokens. This allows it to surface positions that other trackers miss entirely, including Solana protocols that use program-derived addresses, NFT-based positions, native stake accounts, and proxy architectures. RiskGuard currently detects positions across more than twenty-five protocols spanning Base and Solana.

## Pillar two — A transparent four-dimension risk engine

Every position is scored across smart-contract risk, liquidity risk, centralization risk, and market risk. These combine into a single portfolio score that also accounts for concentration using a Herfindahl-Hirschman Index measure of diversification. The scoring methodology is transparent and explainable — a user can see why a position scored the way it did.

## Pillar three — AI-generated risk intelligence

Raw scores are translated into human language by an AI engine. Rather than presenting a number and leaving interpretation to the user, RiskGuard explains what is going well, identifies the single most pressing risk with specific figures, and recommends a concrete action — all in a few sentences.

## At a glance

| Metric             | Value                      |
| ------------------ | -------------------------- |
| Protocols detected | 25+                        |
| Chains covered     | 3 (Solana, Base, Ethereum) |
| Risk dimensions    | 4                          |

The result is a product that is accessible to a casual investor yet technically rigorous enough for an active DeFi trader — covering the chains and protocols that other tools leave in the dark.


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