Fully backed user balances
ZKE demonstrates that the total on-chain assets are greater than or equal to the sum of all user balances recorded off-chain.
Transparency · Proof of Reserves
100% Proof of Reserves Merkle Tree–based on-chain transparency
ZKE uses a Merkle Tree–based Proof of Reserves system so every user can independently verify that their assets are fully backed and correctly included in the reserve snapshot.
Monthly snapshots
Proof of Assets & Liabilities
Independent user verification
Verify after login
Go to Balances > Asset Audit after you sign in.
Reserve Status
100%
Assets > Liabilities
Proof of Assets
On-chain
Proof of Liabilities
Merkle Tree
User-side verification
Self-check
What does Proof of Reserves guarantee?
Proof of Reserves is not just a buzzword. It is a concrete, cryptographic mechanism that shows ZKE can honor all user withdrawals at any time.
Transparent liabilities
User balances are aggregated into a Merkle Tree, so the Proof of Liabilities can be verified without exposing any individual user data.
Independent self-verification
Each user can verify that their balances are included in the Merkle Tree snapshot by checking their Merkle proof after logging in.
Without transparent reserves, users have to “just trust” the platform.
With Proof of Reserves, trust is replaced by verifiable math.
How does ZKE prove reserves?
Proof of Reserves combines on-chain Proof of Assets with an off-chain Proof of Liabilities built using a Merkle Tree.
Step 1
Aggregate user balances
ZKE takes a snapshot of all user balances in the database. Each user’s balance (and a hashed identifier) becomes a leaf node in the Merkle Tree.
Step 2
Build the Merkle Tree
Leaf nodes are paired and hashed upward to form the Merkle Tree. The top of this tree is the Merkle Root, representing all user liabilities in a single hash.
Step 3
Match assets vs. liabilities
On-chain wallet addresses controlled by ZKE provide Proof of Assets. If assets > liabilities (Merkle Root snapshot), the exchange is solvent.
Why a Merkle Tree?
A Merkle Tree makes it possible to verify the integrity of the full list of user balances using only a small subset of data.
- No need to expose the complete user list;
- Any change to an individual balance changes the Merkle Root;
- Negative balances cannot be hidden without breaking the proof.
Solvency condition
If Proof of Assets > Proof of Liabilities, ZKE can always honor 100% of withdrawals.
Proof of Reserves does not replace security controls, but it provides a transparent, verifiable guarantee about the platform’s solvency at the time of each snapshot.
How can I verify my own funds?
Verifying your inclusion in the Proof of Reserves snapshot takes just a few clicks inside your ZKE account.
01
Log in
Log in to your account on ZKE.com from web or app.
02
Open “Balances”
Click Balances on the top-right navigation bar.
03
Go to “Asset Audit”
In the dropdown menu, select Asset Audit.
04
Verify snapshot
Check your Merkle proof and confirm your balances are included.
Verify after login →Frequently Asked Questions
Still have questions about ZKE’s Proof of Reserves? Here are some quick answers.
Proof of Reserves is a cryptographic audit process that shows the platform holds enough assets to cover all user deposits. It combines Proof of Assets (on-chain funds) with Proof of Liabilities (user balances in a Merkle Tree).
Your username and balances are hashed before being added to the Merkle Tree. Other users cannot see your data, and you do not need access to anyone else’s records to verify your own inclusion.
No system can remove all risk, but Proof of Reserves significantly reduces solvency risk by making it publicly verifiable. It works together with cold storage, security controls, and compliance to protect user assets.
ZKE performs regular snapshots and plans to further increase the frequency over time, so users can rely on fresh and up-to-date Proof of Reserves data.