Proof of Reserves (PoR) is a crucial mechanism for ensuring transparency and trust in the crypto ecosystem. It allows users to independently verify that an exchange holds sufficient assets to cover all client balances. A key component of this process is the user data snapshot, which captures a user's complete financial position at a specific point in time, including any debts or negative equity that might arise from activities like asset borrowing.
If you notice a discrepancy between the asset summary displayed in your account and the PoR snapshot results, this is typically due to active margin trading positions in your trading account or loans (such as flexible or fixed-term loans) in your Grow account. These factors influence the overall asset calculation and can lead to differences between the two views.
Why Might My Account Assets Differ From the Snapshot?
The assets shown on your "Portfolio" page generally include your collateral amount and any Unrealized Profit and Loss (UPL) associated with open positions. However, assets purchased with borrowed funds and the resulting debts from margin trading positions are not displayed on your main portfolio page. Instead, they are fully accounted for within the PoR snapshot.
For instance, if you have an open margin trading position, its value can fluctuate with market conditions. The snapshot, taken at a specific moment, captures this exact state. Your live portfolio view, however, continuously updates, which can cause a temporary difference between the two.
Does a Difference Indicate a Higher or Lower Total Account Value?
Even if the snapshot figures differ from your account's crypto equity, both calculation methods will yield the same total account value when converted to USD. This is because the snapshot comprehensively accounts for both the assets and liabilities of your positions.
Imagine you engage in margin trading by borrowing 3 ETH and selling it for 3,300 USDT. In the PoR snapshot, your ETH balance would be reduced by 3, and your USDT balance would be increased by 3,300. When the snapshot values of ETH and USDT are combined, their total USD value will be equivalent to the Unrealized PnL from your margin position. 👉 Explore more strategies for tracking your portfolio value
Advanced Verification: Understanding Trading Equity Value
Different account modes support margin positions in various ways, which directly impacts how your equity is calculated.
Viewing and Changing Your Account Mode
You can check your current configuration by navigating to Trading > Settings > Account Mode. Here, you can also switch your Isolated Margin Transfer setting between Auto-Transfer and Quick Margin.
Examples of Calculation Differences
The method for calculating equity depends heavily on your margin position mode. The following scenarios illustrate why differences occur between your account view and the snapshot, while emphasizing that the net USD value remains identical.
- Cross Margin Position Mode: In this mode, your account's cross balance remains unchanged after opening a position. The snapshot calculation will include the full asset position and subtract the full liability, which can create a significant difference in the crypto amounts listed for each asset, but the total USD value aligns perfectly with your account equity.
- Isolated Margin - Auto-Transfer Mode: When you open an isolated position, the required margin is automatically transferred to an isolated account. Your main account balance decreases by this amount. The snapshot calculation incorporates the entire isolated position's assets and liabilities, leading to a different breakdown per coin compared to your account view, which shows the isolated margin separately.
- Isolated Margin - Quick Margin Mode: This mode requires you to manually transfer assets into an isolated position before trading. The calculation for this mode is designed so that the snapshot equity and your account equity show identical crypto amounts, as the assets and liabilities are perfectly contained within the isolated account.
In all cases, the core takeaway is that the total USD value of your snapshot assets and your account equity is always the same. The differences in crypto quantities are due to the inclusion of assets and liabilities from your margin trading positions in the snapshot.
Advanced Verification: Understanding Grow Account Equity Value
Grow account products, like loans, also affect your PoR snapshot. When you take a loan, you stake collateral to borrow another asset.
For example, if you use 5,000 USDT as collateral to borrow 0.1 BTC:
- Your account view will show: 0.1 BTC and a collateral equity of 3,422.46 USDT (which is your initial collateral minus the loan liability).
- The PoR snapshot will show: 0 BTC and 5,000 USDT. It reflects the raw assets held, not the net equity from the loan product.
This collateral equity is specific to the Grow account and is not displayed on your main Portfolio page. You must navigate to Grow Account > Loans to see these details.
Frequently Asked Questions
What is a Proof of Reserves (PoR) snapshot?
A PoR snapshot is a record of your account's holdings and obligations taken at a specific point in time. It is used to cryptographically verify that the exchange holds your assets in full, including any debts from margin or loan activities.
Why does my PoR snapshot look different from my portfolio balance?
The difference arises because your portfolio balance may not show borrowed assets or debts from margin trading and loans. The snapshot includes all of these elements to provide a complete picture of your net equity on the exchange, ensuring it can be audited against the exchange's total reserves.
Should I be worried if the numbers don't match?
No. A difference in the breakdown of crypto assets is normal and expected if you use margin or loan products. The key metric is that the total net value in USD of your snapshot will always match the total net value of your account equity. This confirms the calculation's integrity.
How often are these snapshots taken?
Snapshots are taken regularly to facilitate frequent audits. The exact frequency can vary by exchange but is designed to provide ongoing transparency. 👉 View real-time tools for verifying your assets
Where can I see the details of my loans for the snapshot?
The details of your loan collateral and liabilities are not on the main portfolio page. You need to go to the dedicated section for Grow products, typically under Grow Account > Loans, to review the specifics that contribute to the snapshot calculation.
Is my privacy protected in a PoR audit?
Yes. PoR protocols use cryptographic techniques like Merkle trees. This allows you to verify that your account is included in the total reserves without revealing your specific balance or identity to anyone else.