BlockchainIntermediate#Compliance#Trust
KYA (Know Your Agent)
K
Definition
A set of transparency standards for AI agents in DeFi, ensuring users know the agent's logic, underlying model, and risk parameters.
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Concept Diagram
Key Takeaways
1
KYA is an emerging trust framework requiring transparency about which AI model drives trading decisions.
2
Agents must disclose their strategy logic — e.g., Order Block vs Funding Rate arbitrage.
3
Hardcoded risk guardrails (stop-losses, draw-down limits) must be verifiable by investors.
4
KYA enables due diligence on algorithms as if auditing a human fund manager.
Practical Example
Before allocating $1M to an AI fund, an investor reviews the KYA report: the agent uses Claude 3.5 for reasoning, follows an Order Block strategy on 4H timeframes, and has a hardcoded 15% maximum draw-down limit.
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