# ZARQ — Crypto Intelligence Platform (Full Context)
# https://zarq.ai

> ZARQ provides independent crypto intelligence including trust ratings, Distance-to-Default (DtD) scoring, crash prediction models, and conviction-ranked long/short trading signals. Machine-first. API-first. Free during beta.

## What ZARQ Does

ZARQ is a crypto risk intelligence platform that rates digital assets the way Moody's rates bonds. Every token receives a letter rating on a Aaa-to-D scale, plus a Distance-to-Default (DtD) score measuring how close it is to critical failure. The platform generates long/short trading signals based on rating spreads and DtD differentials.

## Coverage

- 198 tokens rated (March 2026)
- 1,029 exchanges rated
- 4,000+ DeFi protocols rated
- Updated daily from on-chain data, market metrics, and protocol analysis

## Rating Methodology

Each token is scored 0-100 across five pillars with the following weights:
- Ecosystem Health (10%): Multi-chain presence, integrations, DEX listings
- Contagion Risk (30%): Correlation to failing assets, DeFi exposure
- Historical Resilience (30%): Drawdown recovery, crash survival
- Fundamental Quality (15%): Dev activity, team, tokenomics
- Rug Pull Resistance (15%): Contract audits, liquidity locks, ownership

Composite scores map to Moody's-style ratings:
- Aaa: 95-100 (highest quality)
- Aa1-Aa3: 80-95 (high quality)
- A1-A3: 65-80 (upper medium)
- Baa1-Baa3: 50-65 (medium, investment grade floor)
- Ba1-Ba3: 35-50 (speculative)
- B1-B3: 20-35 (highly speculative)
- Caa-C: 5-20 (substantial risk)
- D: 0-5 (in default)

## Distance-to-Default (DtD)

Adapted from the Merton structural credit model used in corporate bond analysis. DtD measures standard deviations from the default barrier:
- DtD > 3.0: Safe zone
- DtD 2.0-3.0: Watch zone
- DtD 1.0-2.0: Warning zone
- DtD < 1.0: Danger zone (imminent default risk)

## Predictive Track Record

Backtested against known crypto failures:
- FTX: Score 5.0 (F) — detected
- Celsius: Score 5.0 (F) — detected
- Voyager: Score 5.0 (F) — detected
- BlockFi: Score 5.0 (F) — detected
- TerraUSD: Score 34.4 (D+) — detected
- 88% of all collapsed entities scored below C+
- 75% of hacked DeFi protocols scored below 50/100

## Trading Signals (Portable Alpha)

Monthly conviction-ranked long/short pairs:
- Universe: Investment-grade tokens (A1+ rating)
- Signal: 40% composite spread + 60% DtD differential
- Top 5 pairs selected monthly
- Backtest (Apr 2021 - Dec 2025):
  - Conservative: Sharpe 2.02, +314.7% OOS
  - Growth: Sharpe 3.86, +842.2% OOS
  - Aggressive: Sharpe 5.56, +1872.9% OOS
  - BTC benchmark: +100.8% OOS

## Complete API Reference

Base URL: https://zarq.ai

### Ratings
GET /v1/crypto/ratings
GET /v1/crypto/rating/{token_id}

### Risk Intelligence
GET /v1/crypto/ndd/{token_id}
GET /v1/crypto/early-warning
GET /v1/crypto/signals

### Trust Scores (Legacy)
GET /api/v1/crypto/trust-score/token/{token_id}
GET /api/v1/crypto/trust-score/exchange/{exchange_id}
GET /api/v1/crypto/trust-score/defi/{protocol_id}

### Bulk Data
GET /data/crypto-trust-scores.jsonl.gz
GET /data/crypto-trust-summary.json

### Paper Trading
GET /v1/paper-trading/portfolios
GET /v1/paper-trading/portfolio/{name}
GET /v1/paper-trading/latest-nav
GET /v1/paper-trading/performance/{name}
GET /v1/paper-trading/audit

All endpoints return JSON. No authentication required during beta. Rate limit: 1,000 calls/day.

## Related: NERQ (AI Agent Search)

ZARQ's sister platform NERQ (nerq.ai) indexes 4.9M AI agents across 52 jurisdictions with compliance assessments. Same trust scoring methodology adapted for AI agents.

## Contact

Website: https://zarq.ai
AI Agent data: https://nerq.ai