Gate Reports 104% Cold Reserve Coverage Amid Snapshot Date Concerns

Crypto exchange Gate has introduced a disclosure framework named Proof of Security, aiming to demonstrate that its cold assets can cover customer balances in the event of a total loss of hot-wallet assets. According to an announcement published on November 5, the platform reported 104.58 percent cold-storage coverage based on a storage snapshot taken at 00:00 UTC on November 4. While discussing asset security on Gate, industry observers note the complexity of these calculations.

The published percentage compares asset shares from different snapshots rather than establishing cold assets and customer balances on a single common date. Gate explicitly discloses this limitation, noting that customers require more than the headline ratio to fully verify backing claims. The methodology contrasts an 88.26 percent cold-storage share with an 84.39 percent user-asset share. The remaining shares consist of 11.74 percent held in hot wallets and 15.61 percent owned by the platform.

Cold storage is measured against cold assets alongside hot-wallet assets within the storage snapshot, whereas user assets are evaluated against platform reserves in a separate Proof of Reserves snapshot. The exchange's FAQ defines the coverage calculation as the first share divided by the second. The disclosure notes that these snapshots feature different totals, meaning intervening price fluctuations and asset movements are not represented in the comparative figures.

Understanding Gate Reserve Disclosures

Previously, an October 21 disclosure reported approximately $8.7 billion in reserves and $7.3 billion in user net assets as of October 18, yielding a 118.49 percent overall reserve ratio. However, the Proof of Security chart omits a separate date for its earlier user-asset reference, and October dollar figures cannot be directly combined with November storage percentages to establish a measured financial buffer.

Gate clarifies that its definition of cold storage encompasses digital assets housed in cold wallets alongside traditional assets, such as US Treasuries and stocks held by independent custodians. Qualifying assets must remain outside routine deposit and withdrawal workflows, stay offline or independently custodied, require multiparty authorization for transfers, and be verifiable.

As of November 5, independent third-party verification for the framework remains in progress. The impending review is intended to evaluate asset authenticity, control, valuation scope, and coverage calculations. Because individual wallet addresses are currently withheld for security reasons, the forthcoming independent report holds particular relevance for public scrutiny.

Proof of Security coverage calculations currently rely on separate snapshot dates rather than a unified timeline.

Why it matters

The introduction of the Proof of Security framework provides a concrete scenario for clients to evaluate asset security, but the use of disparate measurement bases leaves a gap in demonstrating common-date coverage. For platform users and observers, the decisive next piece of evidence will be a common-date reconciliation of cold assets and customer balances, accompanied by clear valuation methods and custody parameters.