# Probability of Default ## Description Probability of Default estimates the likelihood that a company will fail to meet its debt obligations over the next six quarters (18 months) and this enter the state of default. The Probability of Default score is determined by a decentralized and independent network of machine learning models in conjunction with Synnax's proprietary dataset of historical defaults. The scores are regularly updated using new data collected by Synnax, sourced quarterly from public and private company filings with market regulators, exchanges, and state company registrars. A company's PD is calculated as a weighted average of the likelihood of each state (Default / Non-default), as determined by the machine learning models, and the historical PD associated with each state. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.synnax.ai/synnax/synnax-finance/probability-of-default.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.