Trusted · Low risk
DeFi protocol in an AML report
Established on-chain lending, swaps and liquidity pools.
What it means
Smart contracts for swapping, lending and providing liquidity — decentralised exchanges, lending markets, liquidity pools. Providers usually treat well-known protocols as low risk.
Why it is a risk for you as the recipient
Most DeFi activity is ordinary trading. However, hackers also swap stolen tokens on DEXs, so a DeFi label does not cancel high-risk labels further back in the chain.
Example situation
Illustrative scenario, not a real case. Part of an address’s funds came from a liquidity pool withdrawal on a major DEX. That alone is normal.
What to do if it shows up in a report
- No action needed for this category alone.
- If the same report also shows stolen funds or mixers, those matter more.
A high risk score is a reason to look closer, not proof of a crime. A low score does not guarantee that an exchange or issuer will not freeze funds.
FAQ
Why do some checkers flag bridges?
Bridges move funds between networks and are sometimes used to break the trail. Providers rate them differently.