---
sidebar_position: 15
---

# 🤝 Trust Engine

## Overview

The Trust Engine is a sophisticated system for evaluating, tracking, and managing trust scores for token recommendations and trading activity. It combines on-chain analysis, trader metrics, and historical performance to create a comprehensive trust framework.

## Core Components

### Trust Score Database

The database schema manages various aspects of trust:

```typescript
interface TrustScoreDatabase {
  // Core data structures
  recommenders: Recommender[];
  metrics: RecommenderMetrics[];
  tokenPerformance: TokenPerformance[];
  recommendations: TokenRecommendation[];
}

interface Recommender {
  id: string;
  address: string;
  solanaPubkey?: string;
  telegramId?: string;
  discordId?: string;
  twitterId?: string;
  ip?: string;
}

interface RecommenderMetrics {
  recommenderId: string;
  trustScore: number;
  totalRecommendations: number;
  successfulRecs: number;
  avgTokenPerformance: number;
  riskScore: number;
  consistencyScore: number;
  virtualConfidence: number;
  lastActiveDate: Date;
}
```

### Token Analysis

The system tracks comprehensive token metrics:

```typescript
interface TokenPerformance {
  tokenAddress: string;
  priceChange24h: number;
  volumeChange24h: number;
  trade_24h_change: number;
  liquidity: number;
  liquidityChange24h: number;
  holderChange24h: number;
  rugPull: boolean;
  isScam: boolean;
  marketCapChange24h: number;
  sustainedGrowth: boolean;
  rapidDump: boolean;
  suspiciousVolume: boolean;
  validationTrust: number;
  lastUpdated: Date;
}
```

## Trust Scoring System

### Score Calculation

```typescript
async function calculateTrustScore(
  recommenderId: string,
  metrics: RecommenderMetrics
): Promise<number> {
  const weights = {
    successRate: 0.3,
    avgPerformance: 0.2,
    consistency: 0.2,
    riskMetric: 0.15,
    timeDecay: 0.15,
  };

  const successRate = metrics.successfulRecs / metrics.totalRecommendations;
  const normalizedPerformance = normalizePerformance(metrics.avgTokenPerformance);
  const timeDecayFactor = calculateTimeDecay(metrics.lastActiveDate);

  return (
    (successRate * weights.successRate +
      normalizedPerformance * weights.avgPerformance +
      metrics.consistencyScore * weights.consistency +
      (1 - metrics.riskScore) * weights.riskMetric +
      timeDecayFactor * weights.timeDecay) *
    100
  );
}
```

### Token Validation

```typescript
async function validateToken(
  tokenAddress: string,
  performance: TokenPerformance
): Promise<boolean> {
  // Minimum requirements
  const requirements = {
    minLiquidity: 1000, // $1000 USD
    minHolders: 100,
    maxOwnership: 0.2, // 20% max single holder
    minVolume: 500, // $500 USD daily volume
  };

  // Red flags
  if (
    performance.rugPull ||
    performance.isScam ||
    performance.rapidDump ||
    performance.suspiciousVolume
  ) {
    return false;
  }

  // Basic requirements
  return (
    performance.liquidity >= requirements.minLiquidity &&
    !performance.rapidDump &&
    performance.validationTrust > 0.5
  );
}
```

## Trade Management

### Trade Performance Tracking

```typescript
interface TradePerformance {
  token_address: string;
  recommender_id: string;
  buy_price: number;
  sell_price: number;
  buy_timeStamp: string;
  sell_timeStamp: string;
  profit_usd: number;
  profit_percent: number;
  market_cap_change: number;
  liquidity_change: number;
  rapidDump: boolean;
}

async function recordTradePerformance(
  trade: TradePerformance,
  isSimulation: boolean
): Promise<void> {
  const tableName = isSimulation ? 'simulation_trade' : 'trade';
  await db.query(
    `
        INSERT INTO ${tableName} (
            token_address,
            recommender_id,
            buy_price,
            sell_price,
            buy_timeStamp,
            sell_timeStamp,
            profit_usd,
            profit_percent,
            market_cap_change,
            liquidity_change,
            rapidDump
        ) VALUES ($1, $2, $3, $4, $5, $6, $7, $8, $9, $10, $11)
    `,
    [
      /* parameters */
    ]
  );
}
```

### Risk Management

```typescript
async function assessTradeRisk(
  token: TokenPerformance,
  recommender: RecommenderMetrics
): Promise<{
  riskLevel: 'LOW' | 'MEDIUM' | 'HIGH';
  maxPositionSize: number;
}> {
  const riskFactors = {
    tokenTrust: token.validationTrust,
    recommenderTrust: recommender.trustScore,
    marketMetrics: {
      liquidity: token.liquidity,
      volume: token.volumeChange24h,
      holders: token.holderChange24h,
    },
  };

  // Calculate composite risk score
  const riskScore = calculateRiskScore(riskFactors);

  // Determine position sizing
  const maxPosition = determinePositionSize(riskScore);

  return {
    riskLevel: getRiskLevel(riskScore),
    maxPositionSize: maxPosition,
  };
}
```

## Recommendation Analysis

### Pattern Detection

```typescript
async function analyzeRecommendationPatterns(
  recommenderId: string
): Promise<RecommendationPattern> {
  const history = await getRecommenderHistory(recommenderId);

  return {
    timeOfDay: analyzeTimingPatterns(history),
    tokenTypes: analyzeTokenPreferences(history),
    successRateByType: calculateTypeSuccessRates(history),
    riskProfile: assessRiskProfile(history),
  };
}
```

### Performance Metrics

```typescript
interface PerformanceMetrics {
  profitability: number;
  consistency: number;
  riskAdjustedReturn: number;
  maxDrawdown: number;
  winRate: number;
}

async function calculatePerformanceMetrics(
  recommendations: TokenRecommendation[]
): Promise<PerformanceMetrics> {
  const trades = await getTradesFromRecommendations(recommendations);

  return {
    profitability: calculateProfitability(trades),
    consistency: calculateConsistency(trades),
    riskAdjustedReturn: calculateSharpeRatio(trades),
    maxDrawdown: calculateMaxDrawdown(trades),
    winRate: calculateWinRate(trades),
  };
}
```

## Integration with Trading System

### Trade Execution

```typescript
async function executeTrade(
  recommendation: TokenRecommendation,
  trustScore: number
): Promise<boolean> {
  const riskAssessment = await assessTradeRisk(
    recommendation.tokenAddress,
    recommendation.recommenderId
  );

  // Calculate position size based on trust score
  const positionSize = calculatePositionSize(trustScore, riskAssessment.maxPositionSize);

  if (positionSize > 0) {
    await executeSwap({
      inputToken: 'SOL',
      outputToken: recommendation.tokenAddress,
      amount: positionSize,
    });

    await recordTradeEntry(recommendation, positionSize);
    return true;
  }

  return false;
}
```

### Position Management

```typescript
async function managePosition(position: TradePosition, metrics: TokenPerformance): Promise<void> {
  // Exit conditions
  if (metrics.rapidDump || metrics.suspiciousVolume || calculateDrawdown(position) > MAX_DRAWDOWN) {
    await executeExit(position);
    return;
  }

  // Position sizing adjustments
  const newSize = recalculatePosition(position, metrics);
  if (newSize !== position.size) {
    await adjustPosition(position, newSize);
  }
}
```

## Monitoring and Alerts

### Performance Monitoring

```typescript
async function monitorTrustMetrics(): Promise<void> {
  // Monitor trust score changes
  const scoreChanges = await getTrustScoreChanges();
  for (const change of scoreChanges) {
    if (Math.abs(change.delta) > TRUST_THRESHOLD) {
      await notifyTrustChange(change);
    }
  }

  // Monitor trading performance
  const performanceMetrics = await getPerformanceMetrics();
  for (const metric of performanceMetrics) {
    if (metric.drawdown > MAX_DRAWDOWN) {
      await notifyRiskAlert(metric);
    }
  }
}
```

### Alert System

```typescript
interface TrustAlert {
  type: 'SCORE_CHANGE' | 'RISK_LEVEL' | 'PERFORMANCE';
  severity: 'LOW' | 'MEDIUM' | 'HIGH';
  message: string;
  data: any;
}

async function handleAlert(alert: TrustAlert): Promise<void> {
  switch (alert.severity) {
    case 'HIGH':
      await sendImmediateNotification(alert);
      await pauseTrading(alert.data);
      break;
    case 'MEDIUM':
      await sendNotification(alert);
      await adjustRiskLevels(alert.data);
      break;
    case 'LOW':
      await logAlert(alert);
      break;
  }
}
```

## Troubleshooting

### Common Issues

1. **Trust Score Anomalies**

```typescript
async function investigateTrustAnomaly(recommenderId: string): Promise<AnomalyReport> {
  const history = await getRecommenderHistory(recommenderId);
  const metrics = await getRecommenderMetrics(recommenderId);
  const trades = await getRecommenderTrades(recommenderId);

  return analyzeAnomalies(history, metrics, trades);
}
```

2. **Trade Execution Failures**

```typescript
async function handleTradeFailure(error: Error, trade: TradeAttempt): Promise<void> {
  await logTradeError(error, trade);
  await adjustTrustScore(trade.recommenderId, 'FAILURE');
  await notifyTradeFailure(trade);
}
```