  Internet finance is a new financial model that applies Internet technology to
payment, capital borrowing and lending and transaction processing. In order to
study the internal risks, this paper uses the Internet financial risk elements
as the network node to construct the complex network of Internet financial risk
system. Different from the study of macroeconomic shocks and financial
institution data, this paper mainly adopts the perspective of complex system to
analyze the systematic risk of Internet finance. By dividing the entire
financial system into Internet financial subnet, regulatory subnet and
traditional financial subnet, the paper discusses the relationship between
contagion and contagion among different risk factors, and concludes that risks
are transmitted externally through the internal circulation of Internet
finance, thus discovering potential hidden dangers of systemic risks. The
results show that the nodes around the center of the whole system are the main
objects of financial risk contagion in the Internet financial network. In
addition, macro-prudential regulation plays a decisive role in the control of
the Internet financial system, and points out the reasons why the current
regulatory measures are still limited. This paper summarizes a research model
which is still in its infancy, hoping to open up new prospects and directions
for us to understand the cascading behaviors of Internet financial risks.
