Gate says its cold storage covers 104.58% of user assets under Proof of Security, a new framework measuring whether an exchange could cover those assets with cold storage alone if its hot wallets were lost.
Why it matters
PoSEC divides cold storage by user assets. Gate is positioning the measure as a transparency standard for exchanges, following its push for Proof of Reserves.
Market impact
The reported ratio puts Gate's cold storage above its user assets under the metric. PoSEC focuses specifically on cold storage coverage in a hot-wallet loss scenario.
Source: [source](https://webappcsdfedsssd.controller.bot/media/files/8336652911/AgACAgIAAxkBAAJatmrsrzX8Foj9b-iyrUfXGBOjG4dWAAJrHWsbPItpS48hYCzrt5b5AQADAgADeQADPQQ?sig=4uDMmEhJpOTAerkY08XwnhJN68cWuWQiZimZgNSR88Q)
Frequently asked questions
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How is Gate's Proof of Security ratio calculated?
PoSEC divides an exchange's cold storage by its user assets.
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What coverage does Gate report under PoSEC?
Gate reports cold storage coverage of 104.58% of user assets.
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What loss scenario does PoSEC measure?
It measures whether cold storage alone could cover user assets if an exchange's hot wallets were lost.
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How does PoSEC relate to Gate's transparency efforts?
Gate is positioning PoSEC as an exchange transparency standard following its push for Proof of Reserves.
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What does Gate's reported ratio indicate?
The reported 104.58% ratio puts Gate's cold storage above its user assets under the metric.
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