> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pumpguard.xaxios.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Algorithm

> Transparent, metric-based risk scoring

Pump Guard analyzes token holder patterns and calculates a simple 0-100 risk score. Higher scores mean lower risk.

## How It Works

We look at the top 50 token holders and check three key signals:

### 1. Total Native Balance (50% of score)

**What we check**: How much SOL do the top holders have in total?

**Why it matters**: Real traders keep SOL in their wallets for fees and trading. Scam bots usually drain all their SOL after buying tokens.

* **Good sign**: 1,000+ SOL total
* **Warning sign**: 500-1,000 SOL
* **Red flag**: Less than 500 SOL

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### 2. Fresh Wallets (30% of score)

**What we check**: How many of the top holders are brand new wallets (less than 7 days old)?

**Why it matters**: Scammers create fresh wallets to hide their tracks. Too many new wallets means coordinated manipulation.

* **Good sign**: 15 or fewer fresh wallets
* **Warning sign**: 16-25 fresh wallets
* **Red flag**: 26+ fresh wallets

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### 3. Zero-SOL Holders (20% of score)

**What we check**: How many top holders have absolutely no SOL left?

**Why it matters**: You need SOL to pay transaction fees. Wallets with zero SOL are usually bots that extracted everything.

* **Good sign**: 5 or fewer zero-SOL wallets
* **Warning sign**: 6-15 zero-SOL wallets
* **Red flag**: 16+ zero-SOL wallets

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## Final Score

We combine all three metrics with their weights:

* **Low Risk** (70-100%): Looks healthy
* **Medium Risk** (40-69%): Be cautious
* **High Risk** (0-39%): Major red flags

## Live Analysis

Every token you scan on [pumpguard.xaxios.com](https://pumpguard.xaxios.com) gets analyzed in real-time. You'll see:

* Overall risk score and level
* Individual scores for each metric
* Clear color coding (green/yellow/red)
* When the token was last scanned

## Open Source

All our scoring code is public on [GitHub](https://github.com/xaxiosai/pump-guard-monorepo). You can verify exactly how we calculate risk.

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> **Disclaimer**: Pump Guard shows risk patterns, not price predictions. Always do your own research before trading.