PoSEC (Proof of Security) discloses how platform assets are stored, using one metric to answer one question: if all hot wallet assets were lost, could cold storage cover all user assets?

Data Snapshot (UTC)2026-11-04 00:00

Cold Storage Coverage

104.58%

Cold Storage Assets ÷ User Assets

Above 100%: cold storage alone can cover all user assets

Cold Storage vs. User Assets

The left bar represents Proof of Reserves (user assets + platform assets), while the right bar represents the current snapshot (cold storage + hot wallets).

15.61%Platform‑Owned

84.39%User Assets

11.74%Hot Wallet

88.26%Cold Storage

The two bars are based on snapshots taken at different times: Proof of Reserves and the cold/hot wallet storage structure. They are compared by asset share only; price movements and fund flows between the two snapshots are not included.

How PoSEC is calculated

One ratio: what the numerator and denominator represent, and what 100% means.

Cold Storage÷User Assets=

Coverage ≥ 100%

Numerator

Cold Storage

Assets that are not used for daily deposits and withdrawals, are held offline or by an independent custodian, and require multi-party authorization to transfer. This includes cold wallet digital assets and custodied traditional assets.

Denominator

User Assets

The balances of all users' assets on Gate at the time of the snapshot.

Coverage ≥ 100%

Cold Storage Assets ≥ User Assets

When cold storage alone is at least equal to user assets, user assets stay covered even if the entire hot wallet is lost.

What Cold Storage Includes

Only assets that meet all four of the following conditions count as cold storage.

Not used directly for user deposits and withdrawals.
The hot wallet runs online, which makes it the main target of online attacks.
Offline or Independent Custody
Held in an offline signing environment or by an independent custodian.
Multi-Party Authorization for Transfers
No single person or single permission can complete a transfer.
Verifiable
Ownership, balances, and valuation criteria are all fully verifiable.

On-chain

Cold Wallet Digital Assets

Private keys are stored offline, and the contents of each transfer are independently checked before it is signed by multiple parties.

Offline Private Keys
Multi-Signature
Pre-Signature Verification

Off-Chain

Custodied Traditional Assets

Assets the platform holds for its business, such as stocks and US Treasuries, are held by independent custodians.

Independent Custody
Authorized Transfer
Held Off-Chain

Custodied traditional assets count toward cold storage but are not blockchain cold wallets, so the cold storage amount may be higher than the balance visible on-chain.

Third-Party Audit

In Progress

Independent Third-Party Verification

This period's data is being verified by an independent third-party auditor. The report will be published here once the audit is complete.

Asset Authenticity and Control
The assets exist and are controlled by Gate.
Valuation and Reporting basis
Valuation, asset classification and data scope are accurate.
Coverage Calculation
The coverage ratio is calculated correctly.

Proof of Reserves

Gate follows a 100% reserve policy to keep user funds safe and reduce the risk of a shortfall if a run on withdrawals occurs.

Are there enough assets?

Proof

Total platform assets ≥ user assets

Method

Merkle Tree + zk-SNARKs

Users Can Verify

Whether balances are included and reserves are sufficient

Are assets stored safely?

Proof

Cold Storage Assets ≥ User Assets

Method

Independent Third-Party Audit

Users Can Verify

Whether assets remain covered after a total loss of hot wallet assets

Proof of Reserves shows whether there are enough assets. Proof of Assets Security shows whether they are stored safely.

Verifying 100% Reserves with Merkle Tree and zk-SNARKs

We use Merkle Tree and zk-SNARKs to offer transparent verification of our 100% reserves, while safeguarding user privacy and business confidentiality.

The Power of zk-SNARK

With zk-SNARK technology, we provide mathematically rigorous proof of the authenticity and completeness of our reserves, without revealing any sensitive data.

User Empowerment through Self-Verification

Gate enables users to independently verify their account balances within the Merkle tree, ensuring full control and confidence over the assets’ integrity. They can also check the validity of the Merkle root and zk-SNARK proof.

Asset Protection

Gate employs a cold and hot wallet separation strategy to ensure the secure storage of user funds. The platform utilizes machine learning algorithms to evaluate withdrawal risks in real-time. When changes to account security settings occur, the system will freeze withdrawal functionality within 24 hours, dynamically adjust withdrawal limits, and actively block any suspicious activities.

Cold/hot wallet separation storage solution

Set up a reasonable strategy to store most of the assets in cold wallets

Cold Wallet

Holds the vast majority of assets. Offline storage, multisig, multi-person approval

Cold Storage Share This Period88.26%

Anything over the limit moves to the cold wallet immediately.

Topped up after approval from multiple administrators.

Hot Wallet

Handles everyday deposits and withdrawals. MPC, dynamic limits, minimal balances

Hot Wallet Share This Period11.74%

User deposits

Withdrawals after multiple security checks

User

Interact only with the hot wallet, never the cold wallet.

Multisig Wallet (Wallet Backup)

Wallet Operations

Secure API Channel

Trading Platform

Balance Threshold Management
Machine Learning Risk Scoring
Suspicious Transaction Blocking
Withdrawals frozen for 24h after security setting changes

Multi-Layered Hot and Cold Wallet Architecture

Gate keeps cold and hot wallets separate. The vast majority of assets sit in multisig cold wallets that are managed offline and physically isolated.

Multi-Signature and MPC Technology

Gate's hot wallets use multisig and multi-party computation (MPC).

Private keys are managed in a distributed way, so no single point of failure can expose them.

Real-Time Withdrawal Risk Assessment

Gate uses machine learning and real-time monitoring to assess the risk of each withdrawal request and adjust limits dynamically, keeping funds safe.

Smart Trading Limits and Monitoring

Gate adjusts trading and withdrawal limits dynamically based on user behavior and risk level.

Unusual trading activity is monitored and blocked in real time to prevent losses.

Platform Security

From zero-trust internal protection and AI-driven security operations to DevSecOps and sustained security investment, Gate safeguards the platform and user assets from the ground up.

>90%: Automated Alert Analysis
60%: AI-Managed Incident Handling
5 Minutes: Response standard for top-priority (P0) incidents
AA: CER third-party security rating

Never trust, always verify: layered protection for devices, access and keys.

Defense-in-Depth Framework

Every internal device runs endpoint detection and response (EDR), backed by enterprise-grade firewalls and IDS/IPS. A cloud-native application protection platform (CNAPP) brings together asset baselines, attack surface monitoring, AI vulnerability scanning and web/API protection, forming a closed loop of identify, defend, respond and recover.

Zero-Trust Access Control

Every access request goes through identity verification, multi-factor authentication and dynamic risk assessment. Least privilege, regular reviews and on-demand temporary access block lateral movement and privilege abuse.

Hardware-Level Key Protection

Data is classified and controlled by sensitivity level. Core keys are stored in hardware security modules (HSMs) that are physically isolated from the network, with dual control and no plaintext export.

Company-Wide Security Awareness

New hires complete mandatory security training when they join. All staff get regular training and assessment, along with routine phishing simulations.

Never trust, always verify: layered protection for devices, access and keys.

Defense-in-Depth Framework

Zero-Trust Access Control

Hardware-Level Key Protection

Company-Wide Security Awareness

New hires complete mandatory security training when they join. All staff get regular training and assessment, along with routine phishing simulations.

Infrastructure Protection

In-House Trading System

Modular design with regular security audits

Intelligent Threat Detection

AI identifies and blocks abnormal behavior in real time

End-to-End Encryption

Data transmission uses the latest TLS protocol

DDoS Protection

Global Distributed Traffic Scrubbing

AI-Driven WAF

Blocks new attacks in real time and learns from them

DNS Security

Anycast and DNSSEC protect access

Account Security

Gate prioritizes your security by implementing multi-factor authentication at every stage, from login, trade, withdrawal, and security settings, to ensure a safe and seamless experience.

Login

PasskeyRecommended
Login Password
SMS / Email Verification
Google OTP
IP Address Monitoring

Transaction

PasskeyRecommended
Fund Password
Google OTP
Gate Ukey/Yubikey
Trading SwitchesNEW
Trading LimitsNEW

Withdrawal

PasskeyRecommended
Withdraw Whitelist
Multi-Factor Authentication
Security Logs
Withdrawal SwitchesNEW
Withdrawal LimitsNEW

Security Settings

PasskeyRecommended
Anti-phishing Code
24-hour withdrawal freeze after changes
Security Logs

Trading and withdrawal features can each be disabled or have limits set.

Enabling features, increasing, or removing limits takes effect after 24 hours.

Trading Switch and Limits

Spot Trading
Prediction Trading
Prediction Trading
Event Contracts Trading
Futures Trading
Crypto Options Trading
Stock Trading
CFD Trading

Withdrawal Switch and Limits

Gate Internal Transfer
GateCode
Onchain Withdrawal
P2P Sell
Fiat Withdrawal
Gift Coins
Tip
Buy & Sell (Sell Crypto)
Fiat Withdrawal
OTC Fiat Off-Ramp

Supports limit settings in addition to the switch

Contract Security

At Gate, we take comprehensive steps to ensure the safety of user assets by safeguarding smart contracts. Our approach includes automated contract audits, real-time on-chain monitoring, careful project selection, and ongoing security assessments. We also establish no-malfeasance agreements with project teams to maintain accountability and protect your assets.

Real-Time Monitoring

Gate implements automated contract audits, and continuously monitors contract activities on the blockchain to detect any potential risks in real time.

Regular Security Audits

We carefully select high-quality projects and perform regular security audits to ensure that the smart contracts are secure and reliable.

Accountability Through Signed Agreements

Gate works closely with project teams, signing agreements to ensure they act with integrity and adhere to their commitments, safeguarding the interests of our users.

Security Response

Gate is committed to ensuring a secure trading environment for its users. Our security response system is designed around 24/7 monitoring, rapid incident response, disaster recovery & business continuity plan, and a bug bounty program to proactively safeguard assets and data.

24/7 Security Monitoring and Response

Gate’s security team continuously monitors the platform for potential threats. With quick response capabilities, we promptly address security incidents to minimize risks and ensure the safety of user assets.

Disaster Recovery System

We have established a thorough disaster recovery plan (DRP) and business continuity plan (BCP). Our system includes off-site backups, data redundancy, and emergency protocols, ensuring that user assets and data remain secure even in extreme situations.

Bug Bounty Program

Gate runs a bug bounty program to encourage global security researchers to help identify and address potential vulnerabilities. This initiative helps us continually improve platform security and maintain industry-leading standards.

Send an Email to sec@gate.com

Send Now

Submit a Ticket to Report an Issue

Submit Now

Report a Bug Report via Hackenproof

Report Now

Asset Storage

At Gate, user asset security is our top priority. We offer advanced security solutions like Gate Ukey, Gate Wallet, and Gate Wallet Touch to enhance identity verification and asset protection.

Gate Ukey

A premium hardware key designed for secure authentication. It's used for security verification for login, withdrawals, and changes to security settings, providing an extra layer of protection for your Gate account and digital assets.

Gate Wallet S3

The first hardware wallet to integrate advanced fingerprint verification technology. Using cutting-edge fingerprint recognition, Gate Wallet delivers next-level protection for your assets.

Gate Wallet Touch

A convenient card-sized wallet that supports multiple blockchains and thousands of digital assets. Through NFC, it connects seamlessly with the Gate Web3 App, allowing for quick wallet creation, asset transfers, and trades. With comprehensive security features, it ensures the safety of your digital assets, providing peace of mind in every transaction.

FAQ

How is the cold storage coverage ratio (based on asset shares) calculated?

Cold storage share ÷ user asset share. Cold storage share = cold storage ÷ (cold storage + hot wallets) (snapshot for this report); user asset share = user assets ÷ platform reserves (as disclosed in the Proof of Reserves). Since the two figures come from different snapshots with different totals, they are compared by share. A result of at least 100% means cold storage alone can cover all user assets.

Why are excess reserves and hot wallet assets measured at different times?

The excess reserves figure comes from the published Proof of Reserves (verified using Merkle Tree and zk-SNARKs) and can be independently verified; hot wallet assets are calculated using this report’s own snapshot. Price movements and fund flows during the interval may affect the comparison.

Why aren’t all wallet addresses disclosed?

For security reasons, individual wallet addresses are not currently disclosed. Cold storage is protected through offline private keys and multi-party authorization. See “Independent Third-Party Audit” above for how the assets are verified.

What does a coverage ratio below 100% mean?

It means the cold storage share is lower than the user asset share. If all hot wallet assets were lost, cold storage alone would not be sufficient to cover all user assets.

Why are traditional assets held in custody counted as cold storage?

Assets required for the platform’s operations, such as stocks and U.S. Treasuries, are held by independent custodians. Transfers require authorization, and these assets are off-chain and do not rely on on-chain private keys, meeting the four criteria for cold storage. However, they are not held in blockchain cold wallets, so the reported cold storage amount may exceed the balance visible on-chain.

Gate Leads the Way in Proof of Security

Gate pioneered PoSEC, combining 100% reserve backing with a transparent asset storage structure to make user asset protection verifiable.

Cold Storage vs. User Assets

Cold Storage

User Assets

Cold Storage Assets ≥ User Assets

Cold Wallet Digital Assets

Custodied Traditional Assets

Independent Third-Party Verification

Asset Authenticity and Control

Valuation and Reporting basis

Coverage Calculation

Are there enough assets?

Are assets stored safely?

Verifying 100% Reserves with Merkle Tree and zk-SNARKs

The Power of zk-SNARK

User Empowerment through Self-Verification

Asset Protection

Multi-Layered Hot and Cold Wallet Architecture

Multi-Signature and MPC Technology

Real-Time Withdrawal Risk Assessment

Smart Trading Limits and Monitoring

Zero-Trust Internal Security

Defense-in-Depth Framework

Zero-Trust Access Control

Hardware-Level Key Protection

Company-Wide Security Awareness

AI-Driven Security Operations

DevSecOps Secure Development

Ongoing Investment and International Certification

Defense-in-Depth Framework

Zero-Trust Access Control

Hardware-Level Key Protection

Company-Wide Security Awareness

Infrastructure Protection

In-House Trading System

Intelligent Threat Detection

End-to-End Encryption

DDoS Protection

AI-Driven WAF

DNS Security

Account Security

Login

Transaction

Withdrawal

Security Settings

Trading and withdrawal features can each be disabled or have limits set.

Trading Switch and Limits

Withdrawal Switch and Limits

Contract Security

Real-Time Monitoring

Regular Security Audits

Accountability Through Signed Agreements

Security Response

24/7 Security Monitoring and Response

Disaster Recovery System

Bug Bounty Program

Send an Email to sec@gate.com

Submit a Ticket to Report an Issue

Report a Bug Report via Hackenproof

Asset Storage

Gate Ukey

Gate Wallet S3

Gate Wallet Touch

FAQ

Gate Leads the Way in Proof of Security