How Deribit Describes Its Merkle-Tree Proof of Reserves

Summary

This Korean-language document explains Deribit’s stated proof-of-reserves process. It describes a modified Merkle-tree liability proof that lets customers check whether their account balances are represented in a daily snapshot while concealing the mapping between balances, identities, and wallet addresses. Customers can use a proof ID and published code to verify inclusion, and the document outlines checks involving signatures, hashes, and the aggregation of liability entries. The exchange says on-chain assets should cover the reported customer liabilities, with excess reserves including insurance funds and company-held amounts.

The asset snapshot excludes funds held by third-party custodians, so it does not present a complete view of those balances. The document also describes a live endpoint for aggregate margin locked against positions and lists exchange wallet addresses. Its explanation is a transparency procedure, not an independent audit or a trading method; its claims about coverage and verification are the exchange’s own. Daily snapshots may differ as markets and customer portfolios change, and users must follow the described process to check the published data themselves.

Key ideas

• The modified Merkle tree is intended to let customers verify liability inclusion while preserving balance privacy.
• Daily snapshots and published proof data provide inputs for checking account proofs and aggregate liabilities.
• The stated comparison is between reported customer liabilities and on-chain assets controlled by the exchange.
• Assets held by third-party custodians are excluded from the described asset snapshot.
• The document also describes aggregate locked-margin data, while its reserve claims remain exchange-published information.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.