> For the complete documentation index, see [llms.txt](https://docs.countercyclical.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.countercyclical.io/fundamentals/terrace.md).
# Terrace
Terrace · Countercyclical
## Terrace
**Terrace** is Countercyclical’s AI-powered risk analysis engine designed to detect off-balance sheet liabilities, hidden leverage, and unreported financial exposures in corporate filings. It integrates seamlessly into our institutional-grade research platform and provides analysts with verifiable, source-linked insights.
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### What Terrace Does
Terrace analyzes structured and unstructured financial documents—such as SEC filings—to uncover *n-order* risks that may not be visible in traditional balance sheet analysis/due diligence processes.
Each insight Terrace generates includes:
* A concise risk observation
* A confidence score
* Direct source attribution (quote, section, and link to EDGAR)
* Optional user ratings and feedback
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## FAQ
How does Countercyclical approach user data & privacy as it relates to AI?
We take user data and privacy very seriously, and Countercyclical **does not** provide any user data to AI models.
Given that Terrace is a feature add-on available only to users actively paying for the service, we perform strict server-side/back-end validation checks to see if a user has access to the feature, alongside their ability to generate insights for companies for every request made.
Where can I learn more about Countercyclical's AI practices?
You can visit our trust & security center at [https://security.countercyclical.io](https://security.countercyclical.io/) to learn more about how Countercyclical uses AI.
Please send us an email at if you have any questions