Confidence Scoring System

The validation process produces a dynamic confidence score that reflects the current state of the property's digital representation and its alignment with real-world records. It lets a buyer, seller, or lender check a property's title health and token integrity at a glance before transacting. The fastest read is the leading digit: a score starting with 7 indicates a property in normal standing, while any other leading digit signals the token-property link is compromised or under review and should be treated with caution. The rest of this page explains how each digit is composed.

The confidence scoring system is a work in progress and continues to evolve as Fabrica refines its validation approach.

Score Structure

The confidence score uses a positional digit system where each digit represents a different validation category:

Position	Component	Max	Description
Ten-Thousands	`recoveryStatus`	7	Recovery and integrity status of the token-property link
Thousands	`pastTitleAndLoad`	5	Historical title records and property loading documentation
Hundreds	`ownership`	3	Level of confidence in the token ownership
Tens	`onChainHistory`	4	Blockchain transaction history and consistency
Ones	`basicValidation`	2	Foundational legal and structural requirements

The maximum possible score is 75,342.

Example: A score of 72101 breaks down as:

recoveryStatus = 7 (Normal)
pastTitleAndLoad = 2
ownership = 1
onChainHistory = 0
basicValidation = 1

The most significant digits (leftmost) represent the most critical ownership-related validations.

Recovery Status Digit

The most significant digit reflects the recovery status of the property. Unlike the other digits, which are computed from validation checks, this digit is set administratively based on recovery events.

Value	Status	Description
7	Normal	Default state. No recovery activity.
6	Recovery Pending	A §10.2 Notice of Lost Token Control has been recorded by the Beneficiary to recover access. Token-property link intact; Quiet Period running.
5	Stolen	The token has been reported as stolen via an unauthorized transfer.
4	Distressed	The Property is at material risk of loss to a third party through involuntary process (tax sale, judicial foreclosure of a pre-existing lien, eminent domain, or equivalent). The Trust still holds title and the Beneficiary may still cure. Reversible upon cure.
1	Void	The token has been permanently dissociated from the Property and the Trust following an Alternative Dissolution Event or involuntary loss of title. Irreversible.

A score starting with 7 indicates a property in normal standing. Any other leading digit signals that the token-property link is compromised or under review, and applications should treat the token with caution regardless of the other digits.

Distressed (4) Lifecycle

A token enters the Distressed state when validator checks confirm that an involuntary process has been initiated against the Property that, if uncured, will result in loss of title. Examples include:

The county has issued a tax certificate, tax sale notice, or equivalent post-delinquency instrument
A lienholder has commenced judicial foreclosure proceedings against the Property
A condemnation or eminent domain action has been filed

While in the Distressed state, the Property is still held by the Trust and the Beneficiary may take action to cure (pay back taxes, satisfy the lien, etc.). A successful cure returns the token to Normal (7). If the process completes and title transfers to a third party of record, the token moves to Void (1).

Applications surfacing a Distressed token to its Beneficiary should display a clear warning of the underlying risk and a path to cure.

Validation Checks

Each computed digit is informed by a group of discrete checks (the recoveryStatus digit is set administratively, as described above). The checks that feed each group:

pastTitleAndLoad (thousands)

proofOfTitleValid - Proof of title documents are authentic and properly recorded
claimMatchesLegalDescription - NFT claim matches the recorded legal description
holdingEntityMatchesOwnerNameAtAssessor - Holding entity matches the local jurisdiction's assessor records
noLiensFound - No outstanding liens discovered against the property
propertyTaxesCurrent - Property taxes are up to date

ownership (hundreds)

currentOwnersKycd - Current owners have passed KYC/AML verification
allTransfersKycd - All previous transfers involved KYC-verified parties
ownerHasVerifiedContact - The current owner has a verified contact on file

onChainHistory (tens)

notReportedAsStolen - The token has not been reported as stolen
currentOwnersNotInDarklist - Owners are not on a sanctions/OFAC or otherwise flagged-address list
feesInGoodStanding - Platform maintenance fees are current
transferCooldownMet - The required post-transfer cooldown period has elapsed

basicValidation (ones)

holdingEntityDeclared - Holding entity (trust/LLC) is declared
formationDocumentAvailable - Formation documents for the holding entity are on file
deedAvailable - A recorded deed exists for the property
legalDescriptionAvailable - Legal description of the property is available
coordinatesValid - Geographic coordinates of the property are valid

Using Confidence Scores

Applications and users can query confidence scores via the Scoring API to assess the reliability of a property NFT before transacting.

When evaluating scores:

Check the recovery status digit first (ten-thousands). A value other than 7 indicates the token-property link is compromised or under review.
Check the next digits for ownership-critical status: title history (thousands) and ownership confidence (hundreds).
A higher digit in any position indicates stronger validation for that category.
Applications can parse individual digits to make decisions based on specific validation aspects.