Identify the legal entity and applicable status, read custody and withdrawal terms, test a small withdrawal and keep records. A standalone proof of reserves does not describe every liability or customer protection.
Check an official register
Read rights and asset segregation
Test network, time and fees
Identify the provider
Check the contracting entity, country, offered services and relevant regulator registers. A trade name or advertisement is not proof of authorization. Protections vary by country and service.
Read custody terms
Find out who controls keys, how customer assets are recorded and segregated, whether subcontractors are involved and what happens during outages or insolvency.
Test withdrawals and costs
Before increasing exposure, check supported networks, time, limits, authentication, fees and whether the asset itself can be withdrawn. Test a small withdrawal to a verified address.
Interpret published evidence
A visible reserve address alone does not reveal all liabilities, customer rights or fund availability. Compare scope, date, auditor, excluded accounts and verification method.
Points to compare
| Topic | Description |
|---|---|
| Authorization | Check an official register |
| Custody | Read rights and asset segregation |
| Withdrawal | Test network, time and fees |
| Reserves | Examine liabilities too |
Frequently asked questions
Does proof of reserves guarantee solvency?
No. It may cover only some assets and not establish all liabilities.
Does regulation eliminate risk?
No. It can impose obligations and protections without removing possible losses.
Verifiable sources
Independent educational content reviewed against primary documentation. No personalized recommendation or promise of returns. Reviewed September 23, 2026
