Binance says only surplus futures reserves were reallocated, while ADL rules can still reduce an opposing profitable position.

Binance's latest reserve proof addresses whether a customer's Bitcoin is backed at a dated snapshot. A futures hedge faces a separate test: Binance's futures rules allow Auto-Deleveraging, or ADL, to reduce a profitable short that was offsetting the holding.

In its Nov. 2 proof-completion update, Binance said holders of ten named tokens, including Bitcoin, could independently verify backing of at least 1:1 for the snapshot taken at 00:00 UTC on Oct. 31.

The exchange had disclosed in its Oct. 31 recovery update that some futures insurance reserves helped replenish assets stolen in its security incident. Binance said it released only excess above its required coverage level and that the remaining funds exceeded that requirement. The disclosure alone establishes neither a reserve shortfall nor a measurable increase in ADL probability.

Binance also distinguished its Futures Insurance Funds from user assets: they are its own reserves, outside the user-verifiable PoR view. Those reserves support the handling of bankrupt futures positions and reduce the need to close opposing traders' positions.

Binance said it monitors those funds against stress scenarios and adds company funds when required.

The futures insurance FAQ describes several pools assigned to different contract categories, with Binance able to change allocations. An exchange-wide reserve figure therefore cannot automatically describe the protection available to every Bitcoin contract.

The same FAQ defines Maximum Takeover Capacity as a cap on the notional, or face, value of bankrupt positions a fund can absorb at a time.

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