Sphere Verification

Sphere maintains comprehensive compliance profiles for Sphere verified network participants through the Badge Program system. Each account's compliance profile is stored as a Badge Account, containing detailed risk assessments, regulatory status, and operational capabilities.

Badge Account Structure

Each compliance profile is implemented as a Badge Account with the following structure:

BadgeAccount {
    verifier: Pubkey::from_str("Sphere1234...").unwrap(),
    wallet: Pubkey::from_str("Alice1234...").unwrap(),
    is_verified: true,
    expiration_slot: Some(12345678),
    metadata: vec![
        ("account_type", "institution"),
        ("primary_jurisdiction", "US"),
        ("risk_score", "75"),
        ("liquidity_band", "A"),
        ("kyc_score", "80"),
        ("transaction_score", "70"),
        ("jurisdiction_score", "85"),
        ("business_score", "72"),
        ("currencies", "USD,EUR,GBP"),
        ("sepa_enabled", "true"),
        ("sars_filed", "0"),
        ("last_reviewed", "1683924000")
    ]
}

Badge Account uses the standard Badge Program ABA structure, which enables straightforward lookup capabilities. The structure incorporates an expiration slot mechanism to ensure regular re-verification of accounts and stores a comprehensive compliance profile within its metadata fields. The entire system is managed through Sphere's dedicated compliance program (Sphere1234...).

Profile Data

Each compliance profile contains key metadata about the account's status:

• Account Details: Type, jurisdiction, and risk classification
• Risk Assessment:
  • Overall risk score (0-100)
  • Granular risk metrics:
    • KYC assessment score
    • Transaction pattern analysis
    • Geographic risk factors
    • Business model evaluation
• Liquidity Bands: Trading capacity classification (A-D)
• Payment Rails: Currency support and payment capabilities (SEPA, etc)
• Compliance Status:
  • Suspicious activity reports
  • Last review timestamp
  • Monitoring status

Profile Management

Sphere maintains these profiles through a comprehensive management process that begins with initial verification and profile creation. The system continuously updates risk assessments and conducts periodic compliance reviews, while maintaining real-time transaction monitoring to ensure ongoing compliance.

Verification Process

1. Account submits required documentation
2. Sphere performs:
   • KYC/AML verification
   • Risk assessment
   • Capability evaluation
3. Upon approval:
   • Sets verification status
   • Establishes review schedule
   • Begins active monitoring

Other programs can verify an account's status by checking its Badge Account, accessing compliance data while preserving privacy of underlying KYC information.