Gate Proposes PoSEC Exchange Security Standard, Reports 104.58% Cold-Wallet Coverage

Cryptocurrency exchange Gate has introduced PoSEC, a proposed security standard intended to strengthen how exchanges assess and communicate asset protection practices.
The company reports cold-wallet coverage equivalent to 104.58% of user balances. The figure suggests that its reported cold-storage holdings exceed the corresponding balance measure, although the precise calculation and scope require examination.
Cold storage can reduce exposure to certain online attacks, but it does not eliminate operational, custody or counterparty risks. A reported coverage ratio also differs from a complete independent assessment of an exchange's assets and liabilities.
PoSEC could contribute to discussions about exchange security standards, but its credibility will depend on transparent methodology, independent verification and adoption beyond Gate itself.