In centralized trading platforms, user assets are often recorded via the ledger in the database, and how to prove the reserve fund has become a difficult issue. In CoinEx, we use the "Merkle Tree" as an audit method to prove that the platform maintains a 100% reserve rate. This audit methodology requires three key steps for verification:
1. CoinEx uses "Merkle Tree" as a data structure to encrypt user assets and publish the total assets of all users at the same time.
2. CoinEx displays the total assets of all on-chain wallet addresses and wallets held by the platform.
3. By comparing the total assets of all users with the total assets of all on-chain addresses on CoinEx, users can verify the asset reserve rate of CoinEx.
When the total on-chain assets on CoinEx are greater than or equal to the total assets of the user, it proves that CoinEx maintains a 100% reserve rate.
Note: Uncovered assets before the snapshot and asset transactions after the snapshot will not be included in the audition.