Skip to main content

How Is the Insurance Fund Audited for Transparency and Security?

Reputable exchanges engage external, independent auditors to conduct regular audits of the insurance fund. These audits verify the fund's balance, confirm the segregation of assets, and review the internal controls and security measures.

The audit reports are sometimes published publicly to demonstrate financial integrity. Furthermore, the exchange's internal risk team continuously monitors the fund's security and transaction history.

Can a Merkle Proof Be Used to Verify the Integrity of an Options Contract Data Feed?
What Are the Key Differences in the Skillsets of a Smart Contract Auditor and a Traditional Software Auditor?
How Can an Independent Audit Mitigate the Risk of Centralized Stablecoin Reserves?
Why Is a Contract’s State Considered Inconsistent after an Unchecked Failed External Call?