Proof of reserves

An exchange shows the coins it holds in its wallets next to what its users own on the platform.

What it means

It shows assets, but often not all of the exchange's debts and other obligations, and it is a snapshot of one moment.

What to watch

Whether debts and other obligations are included, who checked the figures, and how often the proof is repeated.

How Compass-Alpha uses it

Background only; not used in any figure on Compass-Alpha.