Cap or No Cap

CapCheck is designed to combat fraudulent trading profit-and-loss (PnL) claims and promote transparency in the trading community. We’ve come across multiple accounts that pretend to be profitable traders, posting engaging and often ridiculous images showcasing entry and current prices of memecoins and other assets they “invested” in. These users promote nearly impossible percent returns, connivingly inspiring budding traders or amateur enthusiasts to follow their fraudulent courses, methods, and teachings. As a result, genuine people showing off their successes are often shut down or canceled online due to the reputation that deceptive “crypto gurus” bring to the space. Our tool is the solution.

Leveraging OpenAI-powered image processing, CapCheck processes PnL screenshots uploaded to our interactive Telegram bot. Users can upload screenshots directly, whether they originate from Telegram communities, Twitter, or other sources. CapCheck downloads, parses, and extracts data from the PnL images.

Our Zero Knowledge proof algorithm deploys a bi-pronged approach, matching both the price claims on open ledgers, as well as corresponding percent returns calculated externally. We’ve specifically employed error-handling contingencies to deal with multiple trades displaying values we want, using matching conditionals to find the relevant trade. A ZK proof is only complete when it satisfies key conditions, and by using our bi-pronged approach, we ensure that the passed values are honest, generating a truly trustless and verifiable proof.

Once we’ve determined if the images contain true or false PnLs, CapCheck provides feedback directly through the Telegram bot. The feedback includes the authenticity of the claim, as well as the relevant ZK hash for transparency and proof. Help us implement positive change in the crypto trading space and prove to the world that we can be more than just a collective of grifts and gurus, but the future of verifiable financial freedom!

How It Works (TL;DR)
Users upload PnL images to CapCheck’s Telegram bot. CapCheck uses AI to extract critical details, including:

• Entry price
• Current price
• Percentage gain/loss

The extracted data is cross-referenced with public blockchain and exchange data to validate the trade's authenticity. The ZK-proof mechanism ensures that the verification process remains secure and trustless.

Transparency and Fraud Prevention:
By automating the verification process and providing results directly through Telegram, CapCheck raises awareness about fraudulent claims and promotes accountability among traders.

CapCheck is an end-to-end solution leveraging blockchain technology, AI-powered image processing, and zero-knowledge proofs (ZKPs) to automate the verification of trading PnL claims. The system is designed to ensure a trustless, scalable, and accurate verification process.

1. Telegram Bot Integration
   The interactive bot is built using Python and the Telegram API to provide a seamless user experience. Users interact with the bot by uploading PnL images, which the backend processes to extract relevant data. Telegram was chosen as the primary platform because it is where many trading communities operate, as well as the online home of traders in our client demographic, making it the ideal space to target fraud while offering compatibility with images from other sources like Twitter.

2. AI-Powered Image Parsing
   AI is used to extract critical data from PnL images, including entry price, current price, and percentage gain or loss. OpenAI’s GPT-based API ensures accurate data extraction even from non-standardized formats. Preprocessing techniques like format normalization and content enhancement ensure compatibility across various image types.

3. Zero-Knowledge Proof Validation
   The extracted PnL data is validated using a zero-knowledge proof mechanism implemented with the RISC Zero ZKVM. The ZKVM securely executes the PnL calculation formula:
   pnl = ((current - entry) / entry) * 100
   A proof hash is generated if the provided data matches the calculated values. This ensures data integrity without exposing sensitive trade details.

4. Blockchain Integration
   A Solidity smart contract deployed on the Zircuit Testnet manages proof hashes generated by the ZKVM. The ProofVerifier contract allows users to store and verify proof hashes securely on-chain, ensuring immutability and transparency.

5. End-to-End Workflow

• Users upload PnL images to the Telegram bot.
• AI-powered parsing extracts PnL data from the uploaded images.
• The ZK proof system validates the extracted data against real trade data.
• Validated proof hashes are posted to the blockchain for public transparency.
• The Telegram bot provides users with real-time feedback, categorizing claims as verified, fake, or mixed.

1. Key Technologies and Tools

• OpenAI API for AI-driven image parsing and data extraction
• RISC Zero ZKVM for secure and efficient zero-knowledge proof validation
• Solidity and Foundry for smart contract development and deployment
• Python and Telegram API for building the interactive bot
• Zircuit Testnet as the blockchain infrastructure for logging proof hashes

CapCheck’s technical implementation combines advanced technologies with a user-friendly Telegram interface, ensuring a scalable and trustless solution for verifying trading claims. By focusing on Telegram’s active trading community while supporting images from other platforms like Twitter, CapCheck meets users where they are while promoting transparency and trust.