Model Integrity

Definition ∞ Model integrity refers to the trustworthiness and reliability of a computational or predictive model. It signifies that the model accurately represents the underlying system it is designed to simulate or analyze and has not been tampered with or corrupted. Maintaining model integrity is paramount for ensuring valid outcomes and sound decision-making.
Context ∞ Discussions surrounding model integrity are often found in news concerning algorithmic trading, decentralized finance (DeFi) risk assessment, or the validation of complex financial instruments within the crypto space. Ensuring that the models used for pricing, risk management, or automated decision-making are sound and free from manipulation is a significant concern. Breaches in model integrity can lead to substantial financial losses or systemic instability within digital asset markets.