exponentially-biased-debt-repayment-weight

Exponentially Biased Debt Repayment Weight
Parameter Explorer

🔎 Overview

Parameter Explorer

This parameter explorer serves as a companion tool for the Exponentially Biased Debt Repayment Weight technical note.

Technical Note

The Exponentially Biased Debt Repayment Weight technical note defines an exponentially biased debt repayment weight, a closed-form method for ranking indebted users based on repayment history. Each repayment is normalized by a fixed reference debt amount and weighted by an exponential recency function, producing a transparent score that emphasizes recent repayment behavior while retaining a controlled contribution from older history.

• The standard form of the method uses an asymptotic exponential decay function.
• An extended form of the method introduces boundary-condition coefficients that force the decay function to reach exactly zero at a specified cutoff period.

The method requires no model training, labelled outcomes, demographic features, or third-party behavioral data. It is presented as an independent, non-peer-reviewed technical note and should be understood as a repayment-ranking heuristic rather than a calibrated credit-risk model.

🛠️ Resources

• Exponentially Biased Debt Repayment Weight (PDF)
• Companion Parameter Explorer
• Medium Article
• For the sake of entertainment, Original white board explanation