Proof-of-Reserves Coverage
Measure proof-of-reserves asset ratio and customer-account inclusion.
Description
Reserve and account-inclusion ratios summarize supplied asset/liability totals.
Reserve and account-inclusion ratios summarize supplied asset/liability totals. They do not constitute proof of solvency.1
Measure proof-of-reserves asset ratio and customer-account inclusion.
When to use Proof-of-Reserves Coverage
Use this tool to measure proof-of-reserves asset ratio and customer-account inclusion.
Prepare the documented facts, aligned totals or expected/observed evidence labels requested. Choose applicable requirements and thresholds separately before interpreting a planning screen.
How to use Proof-of-Reserves Coverage and understand its results
- Prepare the documented facts, aligned totals or expected/observed evidence labels requested. Choose applicable requirements and thresholds separately before interpreting a planning screen.
- Enter verifiedReserveAssets, reportedCustomerLiabilities, includedCustomerAccounts, totalCustomerAccounts, minimumReserveRatio using the field table and calculation rules, then run the tool.
- Read reserveRatio, accountInclusionPercent, reserveSurplus, meetsReserveRatio. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| verifiedReserveAssets | Verified reserve assets | number; minimum: 0 | Required |
| reportedCustomerLiabilities | Reported customer liabilities | number; minimum: 0 | Required |
| includedCustomerAccounts | Included customer accounts | integer; minimum: 0 | Required |
| totalCustomerAccounts | Total customer accounts | integer; minimum: 0 | Required |
| minimumReserveRatio | Minimum reserve ratio | number; minimum: 0 | Required |
Enter nonnegative assets/counts/threshold, positive liabilities/total accounts and included≤total. Return ratios, signed surplus and inclusive reserve gate.
reserveRatio=assets/liabilities; inclusion%=100included/total Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| reserveRatio | Reserve asset-to-liability ratio | number; minimum: 0 |
| accountInclusionPercent | Customer account inclusion (%) | number; minimum: 0; maximum: 100 |
| reserveSurplus | Reserve surplus | number |
| meetsReserveRatio | Meets supplied reserve ratio | boolean |
{
"input": {
"verifiedReserveAssets": 1100,
"reportedCustomerLiabilities": 1000,
"includedCustomerAccounts": 95,
"totalCustomerAccounts": 100,
"minimumReserveRatio": 1
},
"output": {
"reserveRatio": 1.1,
"accountInclusionPercent": 95,
"reserveSurplus": 100,
"meetsReserveRatio": true
}
}Limitations and assumptions
No ownership, encumbrances, omitted liabilities or proof-of-reserves evidence is verified; inclusion does not gate the reserve flag.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.
Alternative or Complementary methods
Use Record Count Reconciliation: Reconcile source and target record counts within a caller-supplied tolerance. For a complementary task, use Brokerage Confirmation Reconciliation: Reconcile brokerage and custody confirmations with ledger holdings.
References
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Proof-of-Reserves Coverage — tool.io
Similar or alternative tools
- Record Count Reconciliation
Reconcile source and target record counts within a caller-supplied tolerance.
- Brokerage Confirmation Reconciliation
Reconcile brokerage and custody confirmations with ledger holdings.