Gate says its cold storage covers 104.58% of user assets under Proof of Security, or PoSEC, a framework it has introduced to measure coverage without counting hot wallets.
Why it matters
PoSEC divides cold storage by user assets to show whether offline holdings alone could cover user funds if hot wallets were lost. Gate is positioning the framework as a transparency standard for exchanges, following its push for Proof of Reserves.
Market impact
The reported ratio puts Gate's cold-storage holdings above its user assets under the measure. The distinction for exchange customers is that PoSEC focuses specifically on cold-storage coverage, rather than total reserves.
Source: [source](https://webappcsdfedsssd.controller.bot/media/files/8336652911/AgACAgIAAxkBAAJaqmrsrkU1xbFeL5Szy-BHmBUe9gNhAAKPH2sbdw9pS5pl7fcgBrygAQADAgADeQADPQQ?sig=FDfKoC3cjtSpKEg1T6_aABn3Ggd60BNUko_NHxr2bMQ)
Frequently asked questions
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How does Gate calculate its PoSEC metric?
PoSEC divides the value of cold storage by 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 scenario is PoSEC designed to measure?
It measures whether cold storage alone could cover user funds if hot wallets were lost.
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How does PoSEC differ from a measure of total reserves?
PoSEC focuses specifically on cold-storage coverage rather than total reserves.
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How does Gate position PoSEC alongside Proof of Reserves?
Gate is presenting PoSEC as an exchange transparency standard following its Proof of Reserves push.
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