Hong Kong-based crypto finance firm Amber Group has announced a collaboration with the Institute of Risk Analysis, Prediction and Management (Risks-X) on a crypto risk management research project, according to a company statement.

Fast facts

  • Risks-X is a research institute collaboration between ETH Zurich, a public research university in Zurich, and the Southern University of Sciences and Technology, a public university in Shenzhen, China. The institute is building a risk management platform with real-time and dynamic monitoring of extreme risks, simulations, analysis and risk trend predictions.
  • “Blockchain technology is rapidly changing many aspects of our lives, which calls for an equally rapid development of adequate risk management practices,” said Sandro Lera, an assistant professor at Risks-X and one of the lead researchers on the project. “Creating such statistical tools is exactly our mission at Risks-X.”
  • The project team will study issues around blockchain network latency — the time between submitting a transaction to a network and its confirmation of acceptance. Risks-X will use historical trade data provided by Amber Group to analyze on-chain order book activity and identify market manipulation or fraud associated with network latency, according to the statement.
  • “Issues like fragmented liquidity, network latency have long been an obstacle to greater adoption of the industry,” said Annabelle Huang, a partner at Amber Group. “Risks-X has gathered some of the most brilliant minds in the financial risk analysis area. We’re confident that their research expertise will lead to findings that could help optimize our risk management framework, which can be further generalized to drive best practices in the market.”