Proof of Reserves

Onchain. Permissionless. Verifiable.

Cryptographic proof that every on-chain token is backed 1:1 by a real asset in custody. Verifiable by anyone. Cross-referenced against independent broker-dealer statements. No trust required — by construction.

Reserve Status

Live view of total assets in custody against total on-chain liabilities.

Total Assets in Custody

IBKR + Alpaca

$147.3M

Total Onchain Liabilities

All chains combined

$147.3M

Collateralization Ratio

 

1 : 1

Fully Backed

Last Updated

 

Apr 17, 2026

14:30 UTC

On-chain distribution

Ethereum

$81.3M

Base

$44.6M

Arbitrum

$21.4M

Where the Underlying Sits

Institutional custody accounts for Flo Issuance SPV at two SEC-registered broker-dealers. Interactive Brokers serves as primary and Alpaca as secondary so the issuance chain stays operational if either relationship becomes unavailable — while Rule 15c3-3 customer-asset segregation protects the underlying in any insolvency scenario.

Interactive Brokers LLC

Primary

Share of AUM

68%

Value

$100.1M

FIX API reconciliation. Customer property under Rule 15c3-3.

Alpaca Securities LLC

Secondary

Share of AUM

32%

Value

$47.2M

REST API reconciliation. Customer property under Rule 15c3-3.

Methodology

The scope of what the proof covers, how the numbers are produced, and the limits of what the engagement opines on.

On-chain liabilities

Total Flo token supply per series across every supported chain, aggregated directly from each token contract. Reported in both unit count (per CUSIP) and USD-equivalent.

Off-chain assets

Positions held in institutional custody accounts for Flo Issuance SPV at Interactive Brokers (primary) and Alpaca Securities (secondary). Pulled via broker FIX / REST API and reconciled against the official daily statements.

Reconciliation

Per-CUSIP comparison. Tolerances are zero on unit count and $0.01 on USD-equivalent valuation. Any delta is explained on the face of the attestation.

Valuation source

End-of-period last trade on the primary listing. Where a security is suspended or in corporate action, the auditor applies the documented fallback methodology and discloses it.

Scope limits

The attestation is an Agreed-Upon Procedures engagement — not a full financial audit of the SPV. It confirms the backing ratio at a point in time; it does not opine on the SPV's financial statements as a whole.

Independence

The attestor has no financial or operational relationship with Flo outside of the engagement. Independence statement included on every report.

Historical Snapshots

Trailing six months. Every period has been 1:1 with zero delta. Any non-zero delta would be disclosed on the face of the attestation with explanation.

PeriodAssetsLiabilitiesRatioDelta
March 2026$147.3M$147.3M1.0000$0
February 2026$139.2M$139.2M1.0000$0
January 2026$128.6M$128.6M1.0000$0
December 2025$114.9M$114.9M1.0000$0
November 2025$98.4M$98.4M1.0000$0
October 2025$87.1M$87.1M1.0000$0

How PoR Fits into the Insolvency Picture

Proof of reserves confirms backing at a point in time. Legal segregation is what protects holdings if an entity in the chain fails.

1

Continuous on-chain proof (PoR + daily attestation)

Verifies 1:1 backing at each reporting cycle. Does not protect against insolvency — that's what the next two layers do.

2

Cayman SPV structure

The issuance vehicle is an SPV with a trust-like shareholding arrangement and an independent director on the board. It has no operating activity beyond the note program, keeping it structurally separate from Flo Holdings and limiting exposure to any operating-company outcome.

3

US customer-asset segregation — SEC Rule 15c3-3

At the broker-dealer layer, customer securities and cash are segregated from BD own property and are not available to BD creditors. SIPC provides additional protection up to $500K per account.

Verify It Yourself

Three steps to independently confirm your balance is included in the proof of reserves — no permission needed.

1

Download your Merkle proof

Visit the attestation reports page and download your personalized Merkle proof JSON file. This contains your leaf node (a hash of your balance) and the sibling hashes needed to reconstruct the tree root.

Go to reports
2

Verify your leaf node

Using the script below (or any SHA-256 Merkle verifier), recompute the root hash from your leaf and proof siblings. Compare the result against the root hash stored on-chain in the PoR contract.

3

Cross-reference BD report

Download the latest IBKR or Alpaca daily activity statement, which shows total assets under management. Confirm this matches or exceeds the total on-chain liabilities published by the PoR contract.

verify_reserves.pypython
 1import json
 2import hashlib
 3from web3 import Web3
 4
 5# 1. Connect to the PoR contract
 6w3 = Web3(Web3.HTTPProvider("https://eth.llamarpc.com"))
 7POR_CONTRACT = "0x1a2b3c4d5e6f7890abcdef1234567890abcdef12"
 8ABI = json.load(open("por_abi.json"))
 9contract = w3.eth.contract(address=POR_CONTRACT, abi=ABI)
10
11# 2. Fetch the latest onchain Merkle root
12root = contract.functions.getMerkleRoot().call()
13print(f"Onchain Merkle root: {root.hex()}")
14
15# 3. Load your personal Merkle proof (from /trust/reports)
16with open("my_proof.json") as f:
17    proof = json.load(f)
18
19leaf = proof["leaf"]        # your balance hash
20siblings = proof["proof"]   # sibling hashes
21
22# 4. Recompute the root from your leaf
23computed = bytes.fromhex(leaf)
24for sibling in siblings:
25    pair = sorted([computed, bytes.fromhex(sibling)])
26    computed = hashlib.sha256(pair[0] + pair[1]).digest()
27
28# 5. Verify
29assert computed == root, "Verification FAILED"
30print("Verification PASSED - your balance is included in the proof")
31
32# 6. Cross-reference with broker-dealer position report
33# Download the latest IBKR or Alpaca daily statement and compare total AUM
34# against the onchain liabilities figure published by the PoR contract.

Proof of Reserves — FAQ

The questions that matter about what PoR actually does and does not do.

What does proof of reserves actually prove?+
That at a specific timestamp, the on-chain token supply is matched 1:1 by positions held in institutional custody accounts for Flo Issuance SPV at Interactive Brokers and Alpaca. It does not, on its own, prove ongoing solvency; that is why we layer it with monthly Agreed-Upon-Procedures attestations, the bankruptcy-remote SPV structure, and Rule 15c3-3 customer-asset segregation at the broker-dealer.
What does it not prove?+
It does not opine on the financial statements of any entity as a whole, does not prove that assets won't be withdrawn after the timestamp, and does not cover obligations outside the tokenized series (operating liabilities, vendor payables, etc.). Those are outside the scope of the PoR engagement by design.
How is this better than a snapshot attestation?+
Every mint and burn is visible on-chain in real time. The custodian posts signed attestations of BD holdings that can be verified cryptographically against the on-chain supply. Combined with the monthly independent attestation, this is the closest thing to continuous proof of reserves the asset class permits.
What if IB or Alpaca fails?+
Customer assets at a SEC-registered BD are segregated under Rule 15c3-3 and are not available to BD creditors in an insolvency. SIPC provides additional protection up to $500K per account ($250K for cash) in narrow insolvency scenarios.
What if the issuance SPV fails?+
Flo Issuance SPV is a bankruptcy-remote Cayman SPV with a trust-like shareholding arrangement and an independent director on the board. The underlying assets sit in customer-segregated accounts at a SEC-registered broker-dealer under Rule 15c3-3 — they are not the property of the SPV and are not available to SPV creditors. Note holders retain their direct entitlement to those assets.
Can I verify a holding that isn't mine?+
You can verify that the on-chain Merkle root is consistent with the total supply and with the custodian's signed attestation. You cannot de-anonymize individual holdings — by design. Each holder verifies their own leaf using a personal proof.
How often is the Merkle root updated?+
On every material change to supply. For high-frequency issuance windows, updates are batched into a rolling snapshot published at least once per business day.