Even if the Exchange Is Hacked, Is User Money Protected? A New Account from Gate

Gate introduced its Proof of Solvency and Effective Coverage (PoSEC) framework, reporting that its off-chain assets equal 104.58% of user balances, meaning customer funds would be fully covered even if all hot wallets were compromised. The exchange, which detailed the approach in comments to CoinDesk, positions the metric as a stress-test measure of reserve adequacy beyond standard proof-of-reserves disclosures. The 104.58% coverage ratio implies a surplus buffer of roughly 4.58% above total user liabilities. The move comes as exchanges face heightened scrutiny over custody and insolvency risk following high-profile collapses. What to watch next is whether other venues adopt comparable full-hot-wallet-loss scenarios and whether Gate publishes periodic PoSEC attestations.