What it can show
Proof of reserves can provide transparency about assets held by a platform, depending on the method and audit quality.
What it may not show
It may not fully prove liabilities, operational risk, legal risk or whether assets are safely managed.
Common mistake
Do not treat Proof of reserves as a universal rule. Exchanges, wallets and card apps may use the same term differently, especially around limits, fees, networks and account restrictions.
User action
Before relying on this term, check the provider's official help page, fee schedule or product terms. If funds are involved, test with a small amount first and keep a record of the transaction or setting.
Related pages
Compare exchanges and read about custodial wallets.
How to use this term
Use proof-of-reserves as one trust signal, not as a full safety guarantee.
What to check
Check whether liabilities are included, how often the proof is updated and whether an independent auditor or Merkle proof is available.