Proof of reserves presents assets or a reconciliation at a particular time. It does not automatically establish all liabilities, unencumbered ownership, future solvency or your legal right to recover funds.
A snapshot describes one moment, not future withdrawals.
Scope must cover obligations, not only assets.
Your included balance does not prove all accounts.
Identify entity and snapshot date
Record the covered entity, networks, assets and snapshot date. One brand may use several companies; a subsidiary’s report may not cover your contract. Separate on-chain balances, bank records and management statements.
Address control, ownership and liabilities
A signature can demonstrate key control without showing that assets are unencumbered or not borrowed. Ask how obligations to all customers and other creditors are included. Adding addresses does not reconstruct a balance sheet.
What Merkle inclusion verifies
An inclusion proof can show that a balance belongs to the published set. It does not prove that all customers are included or assets exist. Follow official instructions without disclosing secrets; reserve verification does not require authorizing a transfer.
Attestation, audit and restitution
Read report scope, exclusions and actual work performed. A limited attestation is not a complete financial-statement audit. Check custody and withdrawal terms separately; a favorable snapshot does not guarantee repayment during a crisis.
Read published evidence
| Item | May establish | Does not establish by itself |
|---|---|---|
| Addresses and balances | Observable assets at one date | All debts and legal rights |
| Inclusion proof | Your balance in a set | Completeness of customer accounts |
| Address signature | Key control | Unencumbered ownership |
| Third-party report | Work within stated scope | Guaranteed future withdrawals |
Frequently asked questions
Does a reserve ratio above 100% guarantee solvency?
No. Coverage, valuation, liabilities and encumbrances matter.
Must I connect a wallet to verify my balance?
Follow the provider’s published method. Do not authorize transfers or permissions for inclusion checks and never disclose secrets.
What should I retain?
The dated report, methodology, exclusions and any inclusion proof, alongside applicable custody terms.
Verifiable sources
Independent educational content reviewed against primary documentation. No personalized recommendation or promise of returns. Updated October 6, 2026
