CryptoSlate
Gate reports 104.58% cold-storage coverage under a framework designed to test whether customer balances would be protected after a total loss of hot-wallet assets. The figure divides an 88.26% cold-storage share by an 84.39% user-asset share, but the figures come from separate snapshots with different totals.
Why it matters
Gate's Proof of Security framework uses a storage snapshot taken at 00:00 UTC on Nov. 4 and an earlier Proof of Reserves reference for user assets. The exchange says intervening price changes and fund movements are not reflected. A direct test would compare surviving cold assets and customer balances at the same time, using compatible valuations and the same reporting scope.
Gate includes stocks and US Treasuries held by independent custodians alongside digital assets in cold wallets. It says qualifying assets must be outside routine deposit and withdrawal operations, require multiparty transfer authorization and be verifiable.
Market impact
As of Nov. 5, independent third-party verification of the current data was in progress. Gate says the review covers asset authenticity and control, valuation, reporting scope and the coverage calculation. Individual wallet addresses are withheld for security reasons, according to its FAQ.
An earlier Oct. 18 snapshot reported roughly $8.7 billion in reserves against $7.3 billion in user net assets, a 118.49% overall reserve ratio. Those totals cannot be combined with the November storage percentages to calculate a measured dollar buffer. The disclosure gap does not establish insolvency or customer losses.
Frequently asked questions
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How does Gate calculate its 104.58% coverage figure?
Gate divides an 88.26% cold-storage share by an 84.39% user-asset share. The two shares come from separate snapshots with different totals.
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What assets does Gate include in cold storage?
Gate includes digital assets in cold wallets and traditional assets, such as stocks and US Treasuries, held by independent custodians.
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What would a direct test of customer backing require?
It would compare surviving cold assets with customer balances at the same time, using compatible valuations and the same reporting scope.
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Has Gate's current coverage data been independently verified?
As of Nov. 5, third-party verification was in progress. Gate says the review covers asset authenticity and control, valuation, reporting scope and the coverage calculation.
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Does the disclosure gap establish that Gate is insolvent?
No. The gap means the headline ratio alone does not establish common-date backing; it does not establish insolvency or customer losses.
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