Score Components

Your Localcredit score is a single number between 1 and 1000 that represents your financial reliability based on observable, verifiable behavior. The higher the score, the more trust you’ve earned and the better opportunities (loans, rates, limits) you can unlock across apps and lenders. Unlike traditional credit scores, Localcredit is:

• Portable, it follows you across countries, chains, and platforms.

• User owned, no company controls or monetizes your data.

• Privacy preserving, built with zero-knowledge proofs.

• Progressive, you start earning points immediately and can improve over time.

Scoring methodology:

Repayment and Obligation Fulfillment Measures how consistently a user meets financial obligations, including loan repayments, recurring commitments, and agreed payment schedules observed through on-chain data and verified attestations. It emphasizes timeliness, completion, and recovery rather than binary default events.

Behavioral Consistency and Continuity Evaluates the regularity and stability of a user’s financial activity over time. Long-lived wallets, consistent transaction patterns, and sustained participation across economic cycles signal reliability in ways traditional scores cannot capture. Identity Strength and Persistence Reflects the depth and durability of a user’s abstract identity as established through the privacy-preserving identity layer. Signals such as long-term wallet usage, verified communication channels, and persistent identity linkages increase confidence that observed behavior belongs to the same individual over time.

Cross-Context Behavior Integration Aggregates behavior across multiple platforms, applications, and environments rather than isolating activity within a single institution or jurisdiction. This allows the score to reflect how a person behaves across their full economic life.

Adaptive Weighting and Time Sensitivity The scoring model adjusts the relative importance of signals based on recency and long-term trends. Recent behavior influences access decisions, while long-term history provides stability and resilience against short-term shocks.

Transparency and Verifiability The scoring logic is transparent and auditable, allowing users and integrators to understand how inputs influence outcomes. Users can simulate how behaviors affect their score, reinforcing the idea that reputation is earned, inspectable, and improvable. Together, these components ensure that the credit score reflects a person’s financial journey rather than a static institutional snapshot. It captures reliability as it is lived: gradually, contextually, and across borders.

Scoring Algorithm

The score uses this formula:

S = 100 × (w_I × I + w_B × B + w_C × C - w_R × R) / Σw

All inputs are normalized (0–1) and combined with weights that reflect real-world predictive power.

Component	Weight	Impact Level	What It Measures	How to Improve
Repayment & Obligation Fulfilment	0.40	Highest	Timely loan repayments, recurring payments, bill fulfillment, and recovery after difficulty	Repay loans fully and on time; set up recurring payments; avoid defaults
Behavioral Consistency & Continuity	(part of above)	Highest	Regular activity, wallet age, stable transaction patterns, resilience across market cycles	Use your wallet consistently; receive income regularly; maintain long-term activity
Identity Strength & Persistence	0.20	Medium	Verified channels (email, phone, X, traditional credit, KYC) and durable linkages	Verify email/phone/X; connect traditional credit; complete optional KYC
Cross-Context Continuity	0.20	Medium-Low	Consistent responsible behavior across multiple wallets, chains, apps, and environments	Link additional wallets; stay reliable across different protocols
Risk Deductions	0.20	Subtractive	AML flags, extreme volatility, or negative signals	Avoid high-risk patterns; resolve any flagged issues

Time Sensitivity Recent actions have stronger influence, but long-term positive history provides stability and forgiveness for short-term issues. Example Score BreakdownHere’s what a score of 780 might look like:

• Repayment & Behavioral Consistency: 320/400

• Identity Strength: 160/200

• Cross-Context Continuity: 150/200

• Risk Deductions: -50/20

→ Total: 780/1000 What if you dont want to link KYC/AML, socials or something else? Fully inclusive:

• You can achieve a usable score (500 - 700+) with just a wallet and good on-chain behavior.

• Adding optional boosters (phone, traditional credit, KYC) accelerates growth but is never required.

• The dashboard always shows your biggest available boost so you can decide what’s worth it.

Transparency:

• Tap any activity in your feed to see the exact on-chain transaction, block explorer link, ZK proof, and plain-English explanation of why points were added or deducted.

• No mystery, you always know exactly how your score moves.

Consistent responsible behavior is the fastest path to a high score.