What is Proof of Reserves?

Proof of Reserves (PoR) ensures that custodians hold sufficient funds to cover all users' assets and deposit liabilities while the platform remaining solvent.

This cryptographic attestation demonstrates that Blofin holds a specific amount of assets on its blockchain at a particular time, providing transparency of aggregate user balances. This is achieved without revealing any sensitive information about individual account balances. PoR is a critical component of the crypto trading ecosystem.

The safety of your assets is our top priority

All our customers’ assets are stored in separate accounts and completely detached from our corporate assets. Blofin ensures our balance sheet always holds enough assets with a 1:1 reserve ratio,meaning for each coin our customers hold with us, we have that coin in our custody. No customer assets are lent or staked out without our customers’ express permission.

How Does Proof of Reserves Work

Merkle trees are used in Proof of Reserve verifications, which indicates that Blofin is holding clients’ funds in full.

• Asset right confirmation: Connect your wallet and verify our ownership of on-chain addresses and the total Blofin holdings.
• Merkle Tree generation: Get the data of your Merkle Tree at a certain time.
• Merkle Tree verification: File your data with the open-source verification tool.
• Operation system: Verify our reserve ratio by comparing total user asset holdings with total exchange assets from our on-chain wallet addresses.