Proof of Reserves

XT maintains a 1:1 reserve ratio for all user assets on the platform. The platform issues reserve proof reports regularly, which ensures full transparency.

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Reserve ratio for mainstream assets

You can compare the XT wallet assets with user assets to calculate the platform’s reserve ratio. When the reserve ratio is >=100%, it indicates that the platform's funds are fully sufficient.

TokenXT User AssetsXT Wallet AssetsReserve ratio
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More cryptocurrencies will be included in the audit scope—Let's stay tuned!

What is a Proof of Reserves?

Proof of Reserves (PoR) is a system that allows users to instantly verify the financial proof provided by an exchange, ensuring that the on-chain assets held are sufficient to cover all user assets on the exchange and meet all redemption obligations. PoR uses "Merkle Tree" technology, a type of hash tree commonly used in cryptography and computer science. By utilizing a Merkle tree, the hash values of each user's account assets are stored in the leaf nodes of the tree. Anyone can audit the total user assets stored in the Merkle tree’s leaf nodes through an authorized third-party auditing firm, verifying whether their funds are included in the asset Merkle tree.

Merkle Tree

In the context of Proof of Reserves, the Merkle tree is used to verify the total reserves of an exchange, ensuring they can cover all user assets while preserving user privacy. The underlying data blocks are formed by linking each hashed user UID and balance, which ultimately generate the Merkle tree from all user data. Any changes in account IDs or balances in the leaf nodes will cause the Merkle root to change as well. Each user can verify whether their assets are included in the leaf nodes.

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How to verify reserve funds
Go to Verify
Validated using open-source tools

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