Gate Unveils PoSEC Framework
Key Summary
Gate launched a Proof of Security disclosure framework on November 5, 2026, reporting a cold-storage coverage ratio of 104.58% against potential hot-wallet losses. Exchange documentation confirms the metric combines asset shares taken from different snapshot dates and totals, excluding intervening price movements. Independent verification of the current data remains in progress, while wallet addresses are withheld for security.
Key Bullets
- Gate reported a 104.58% cold-storage coverage ratio in a November 5 announcement using a storage snapshot captured at 00:00 UTC on November 4, 2026.
- The published ratio compares an 88.26% cold-storage share with an 84.39% user-asset share derived from separate Proof of Reserves reporting dates.
- Exchange disclosures confirm that intervening price changes and fund movements are excluded because the calculation uses different underlying dataset totals.
- Independent third-party verification covering asset authenticity, valuation scope, and calculation methodology remains in progress as of November 5.
Gate Launches Proof of Security Framework
Crypto exchange Gate introduced a Proof of Security disclosure framework on November 5, 2026, claiming cold assets cover customer balances following a hypothetical hot-wallet loss. The launch announcement cites a cold-storage coverage ratio of 104.58% based on a storage snapshot captured at 00:00 UTC on November 4, 2026.
Exchange documentation reveals the metric compares an 88.26% cold-storage share against an 84.39% user-asset share. Platform-owned shares sit at 15.61%, while hot wallets hold the remaining 11.74%. Order-book data monitoring shows the calculation divides storage shares by separate reserve shares without reconciling baseline totals.
Snapshot Discrepancies Complicate Reserve Verification
Gate acknowledges in its FAQ that the reserve-structure and storage-structure bars utilize snapshots taken at different times. Intervening price changes and fund movements are explicitly excluded from the published ratio.
A ratio combining shares from distinct underlying totals fails to establish a direct correlation of value at a common date. Previous disclosures from October 18 reported roughly $8.7B in reserves and $7.3B in user net assets, but those dollar sums cannot be combined with November storage percentages to form a unified dollar buffer.
Independent Verification Remains in Progress
Gate withholds individual wallet addresses on security grounds, placing heightened importance on external audits. The PoSEC disclosures state that independent third-party verification remains in progress to review asset authenticity, control parameters, and calculation accuracy.
The upcoming audit is separate from older security assessments listed on the exchange reserve page, including a Hacken implementation review dated January 3, 2024. Market participants await a common-date reconciliation to verify asset backing.
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