> For the complete documentation index, see [llms.txt](https://limitless.gitbook.io/ramm/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://limitless.gitbook.io/ramm/prediction-market-and-amm-technical/decentralized-risk-score.md).

# Decentralized Risk Score

### Probability of Profitability

The probability of profitability(PoP) is a new metric that can be generated by RAMM's prediction market. Whenever a manager buys **`longZCB`**, the amount he buys relative to his **`budget`** determines his confidence level; his subjective probability of the event that an instrument is profitable. Managers' subjective probability can be aggregated to compute a crowd's PoP. 

A higher PoP is a necessity for an **`instrument`** to be approved. It also serves as a quantitative tool that informs the vault's passive investors of the amount of risk they are taking when investing in the vault. 

More information and derivation can be found in the [whitepaper](/ramm/introduction/whitepaper.md).