Governance Credit Scoring Methodology

Technical specification for regulatory review · BuildPaid OS · Patent Pending

1. Overview

The BuildPaid Governance Credit Score is a composite assessment of an entity's creditworthiness derived entirely from governance participation data. It does not use, reference, or incorporate any traditional financial data including credit bureau reports, bank statements, financial statements, bonding capacity, or FICO scores.

Methodology Classification: Mesh-derived. Non-financial. Governance-native. The score reflects how an entity participates in a governed environment, not their financial position.

2. Data Sources

All scoring inputs are generated internally by the BuildPaid governance kernel. No external financial data is ingested, purchased, or referenced.

SOURCEDESCRIPTIONFINANCIAL?
Kernel EventsSHA-256 provenance-hashed governance eventsNo
Compliance RailsCPRAL, COI, LICENSE, SIGNATURE, NOTARIZATION, SPRAL gate resultsNo
Document IntelligenceClassification confidence, verification rate, expiration trackingNo
Behavioral GovernanceBAGE 7-state FSM transitions, composite behavioral scoresNo
Cross-Project HistoryMulti-project governance consistency, session stabilityNo
System EngagementVoice configuration, persona calibration, NPC sessionsNo

3. Scoring Dimensions

DIMENSIONWEIGHTWHAT IT MEASURES
Provenance Depth20%Depth of cryptographic audit trail, hash coverage ratio
Event Density15%Diversity and frequency of governance events, module coverage
Compliance Velocity25%Speed of compliance response, gate pass rate, violation remediation time
Cross-Project Reliability15%Governance consistency across multiple projects
Document Health15%Document verification rate, expiration status, AI extraction confidence
Governance Engagement10%Depth of voluntary governance ecosystem participation

Compliance Velocity carries the highest weight (25%) because empirical analysis shows that the speed at which an entity responds to compliance requirements is the strongest predictor of governance reliability and therefore creditworthiness within the governance context.

4. Grading Scale

GRADESCORE RANGEGOVERNANCE IMPLICATION
A80-100Low governance risk. Eligible for accelerated payment rails.
B65-79Moderate risk. Standard processing terms.
C50-64Elevated risk. Manual review recommended.
D35-49Significant risk. Remediation required.
F0-34Governance failure. Capital release suspended.

5. Bias Analysis

Non-Discriminatory by Design: The governance credit score cannot discriminate based on race, gender, national origin, age, or any other protected characteristic because it does not use any data correlated with these characteristics. The score is derived solely from governance behavior within the BuildPaid system.

Specifically, the scoring model does not use or reference: personal credit history, zip codes or geographic data, demographic information, income or revenue data, years in business as a proxy for age, business size as a proxy for minority status, or any data sourced from credit bureaus.

The model measures only what an entity does within the governance system — how quickly they respond to compliance requirements, whether their documents are current, how deeply they engage with governance rails, and how consistently they participate across projects. These behaviors are fully within the entity's control regardless of protected characteristics.

6. Auditability

Every credit score computation emits a CREDIT_SCORE.COMPUTED kernel event with a SHA-256 provenance hash. The score, per-dimension breakdown, and all input data are cryptographically anchored and immutable. The scoring process can be reconstructed and audited at any time by querying the kernel event ledger.

7. Data Retention

Governance events are retained indefinitely in the kernel event ledger. Credit score history is maintained for the lifetime of the entity's governance identity. Entities may request a copy of their governance data and scoring history at any time.

8. Methodology Transparency

Every credit report generated by BuildPaid includes a methodology declaration stating: "Mesh-derived. No financial history required. Pure governance signal." This declaration is included in API responses, PDF reports, and the lender portfolio view. The scoring weights, dimension definitions, and grading scale are publicly documented.

9. Regulatory Classification

The BuildPaid Governance Credit Score is not a consumer credit score under the Fair Credit Reporting Act (FCRA) or the Equal Credit Opportunity Act (ECOA). It is a business governance assessment tool that evaluates entity participation in a governance operating system. It does not assess consumer creditworthiness and is not used for consumer lending decisions.

Patent Status: The governance-native credit scoring methodology is covered by U.S. Provisional Patent Application No. 77 filed by SP Prospective Partners LLC DBA BuildPaid. 66 total patent applications filed with 1,266+ claims. Patent Pending.

10. Contact

For regulatory inquiries, methodology questions, or audit requests:

Sean Pace · Founder · sean@buildpaid.ai · buildpaid.ai

SP Prospective Partners LLC DBA BuildPaid · Bronx, New York