VECTOR_ANALYSIS // LEGAL
Proof of Reserves (PoR)
NODE: PROOF-OF-RES
VERIFICATION: PASSED
01_DEFINITION
Strict Definition
"An independent audit conducted by a third party or a cryptographic proof (Merkle Tree) that verifies a centralized exchange or issuer actually holds the assets it claims to."
Liability Check // Risk Analysis
The 'Fractional Reserve' risk. Without PoR, an exchange may be lending out your deposits (as seen with FTX). PoR provides transparency, but it only shows assets—not liabilities—meaning it only tells half the story.
Knowledge Context // Related Terms
Auditor NotesVS-AN-2026
Strategy Domain
"Only use institutional custodians or exchanges that provide real-time, cryptographically verifiable Proof of Reserves."
Operations Standard
"Move assets to self-custody immediately if an exchange's PoR signals an imbalance or if they stop providing audit updates."
Legal & Compliance
"Require PoR attestations as part of the quarterly vendor due diligence for any centralized crypto partner."
DOCUMENT_ID: CW3-PROOF-OF-RESERVES-(POR)-2026
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 2/11/2026
HASH: F8NOKE
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 2/11/2026
HASH: F8NOKE