Proof of Reserves (PoR) does not show how much remains in the futures insurance fund. The previous article discussed replenishing assets; this time, we explain the difference between the two forms of protection.
In an announcement on October 31, Binance said that backfilling had used part of the futures insurance fund. The FAQ makes clear that the insurance fund is not a user asset and is not shown in PoR. It serves as a buffer against losses when positions are liquidated, while PoR verifies whether user assets are fully backed.
Futures users therefore need to check the fund’s public records separately. Binance says the remaining balance is above the level required by its risk framework; the amount transferred and the current balance have not been independently verified, so this alone does not justify concluding that ADL risk has increased.
In an announcement on October 31, Binance said that backfilling had used part of the futures insurance fund. The FAQ makes clear that the insurance fund is not a user asset and is not shown in PoR. It serves as a buffer against losses when positions are liquidated, while PoR verifies whether user assets are fully backed.
Futures users therefore need to check the fund’s public records separately. Binance says the remaining balance is above the level required by its risk framework; the amount transferred and the current balance have not been independently verified, so this alone does not justify concluding that ADL risk has increased.
