-- Duraqex proposes four layers of evidence review for proof of reserves, bringing asset control, liability inclusion, asset segregation, and audit and governance into a common assessment approach. The principles aim to help users and institutional due diligence teams understand which conclusions a reserve disclosure supports and which questions require additional documentation.
The proposal addresses a central question in digital asset transparency: when a platform displays asset addresses, balances, or verification results, how can readers assess the relationship between that information and the platform’s obligations?
Under Duraqex’s proposed approach, the value of proof of reserves must be understood in the context of its timing, scope, and verification procedures. Verifying assets at a particular moment provides a starting point. Assessing how those assets correspond to customer entitlements, whether their use is restricted, and how their status changes after disclosure requires several forms of evidence to be connected.
Layer One: Who Controls the Assets, and What Does the Verification Cover?
Asset control is the starting point for review. Disclosures should identify the assets, accounts, or addresses included, the methods used to verify control, and the specific time to which the verification relates.
Different procedures may support different conclusions. A clear disclosure should therefore explain whether verification establishes control over an address, confirms an account balance, or also examines ownership rights and conditions governing the use of the assets.
Duraqex proposes that statements about asset control identify both the scope of coverage and any exclusions. Verification of a group of addresses should not be extended into a conclusion about all assets held by a platform. The existence of an asset balance should also be addressed separately from whether those assets are subject to pledges, lending arrangements, or other restrictions.
Layer Two: Are the Relevant Liabilities Fully Included?
Reserve information needs to be read alongside the basis used to determine liabilities. A comparison becomes meaningful only when the obligations against which the assets are being assessed are clearly defined.
At this layer, Duraqex focuses on the scope of customer balances included, the treatment of different accounts and products, and whether other obligations that could affect the assessment are addressed. Disclosures should also explain whether assets and liabilities are measured at comparable points in time, avoiding an apparently complete comparison assembled from mismatched dates.
For mechanisms that allow users to verify the inclusion of their own balances, individual record verification must be distinguished from a review of the completeness of total liabilities. A user’s ability to confirm that their record is included does not, by itself, establish whether other accounts or obligations have been omitted.
Duraqex therefore proposes that liability definitions receive the same clarity of disclosure as asset coverage. Any conclusion about coverage should state the scope and assumptions on which it depends.
Layer Three: How Are Customer Assets Separated From the Platform’s Own Activities?
Asset segregation concerns the arrangements governing how customer assets are held, used, and managed.
Duraqex’s review principles call for technical records to be explained alongside legal and operational arrangements. Separate addresses or accounts can help identify assets, but further explanation is needed regarding the entity holding them, how customer entitlements are recorded, what restrictions apply to their use, and which documents support those arrangements.
The purpose of this layer is to connect separate asset records with the specific protections afforded to customer entitlements. Descriptions of segregation should be supported by reviewable account structures, agreements, and controls, without inferring broader protections solely from labels such as “separate wallet” or “dedicated account.”
Layer Four: Who Performs the Verification, and How Is Accountability Maintained?
The credibility of evidence also depends on the verification procedures and the governance that follows.
Duraqex proposes that disclosures involving third parties specify the nature of the engagement, its scope, the methods applied, the report date, and its limitations. Different forms of inspection or verification should not all be described as audits covering the platform’s entire financial and operational position.
The frequency of updates also requires clear explanation. Periodic disclosures should enable readers to identify when the latest verification occurred, what information gaps exist between reviews, and how discrepancies will be corrected and explained.
At this layer, transparency also includes the handling of exceptions: who is responsible for investigating them, which changes require renewed disclosure, and under what circumstances earlier conclusions cease to apply. Version histories and correction records allow the evidence to be tracked over time.
Giving Every Conclusion a Clearly Defined Scope
Across these four layers, Duraqex advocates disclosing covered assets, liability definitions, verification timing, update frequency, third-party procedures, segregation structures, and known limitations together. This allows readers to examine conclusions through a connected chain of evidence.
The approach also establishes distinctions between materials at different stages. Methodology descriptions, internal testing, third-party verification, and formal audits should each be presented according to their actual nature. Work that remains incomplete should retain an explicit status indicating that further verification is required.
For users and institutional due diligence teams, the practical value of transparency lies in the ability to ask further questions: which materials support a conclusion, what information is missing, and what additional evidence would be needed to support the next assessment?
Through these review principles, Duraqex extends its discussion of market infrastructure to the interpretation and use of reserve information. Its central proposition is that public conclusions should remain aligned with the scope of the evidence, allowing asset disclosures to form an examinable connection with liabilities, customer entitlements, and ongoing governance.
This release describes principles for evaluating proof of reserves. It does not represent that Duraqex has completed a reserve audit, published a third-party assurance report, or verified its ongoing solvency. Specific reserve positions and verification results should be assessed through formally published reports and supporting documentation.
About Duraqex
Duraqex conducts architectural research and platform development focused on digital asset market infrastructure, capital efficiency, and verifiable operating rules. Its work examines the connections between market access, rule enforcement, asset disclosures, and settlement evidence.
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Contact Info:
Name: Marit Sandvold-Aarnes
Email: Send Email
Organization: Duraqex
Phone: 9167939576
Website: https://www.desixb.com/
Release ID: 89202845
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