Proof of Liabilities

Purpose

PoL shows what WorldX owes users in a privacy-preserving, verifiable way.

Scope Declaration (PoL v1)

PoL must state whether it includes:

• Spot balances

• Pending withdrawals

• Holds (if included) with rules

• Exclusions (and why)

User Verifiability Requirements

User Verification Walkthrough:

1. User opens Trust Hub → PoL Snapshot

2. User retrieves an inclusion proof from the account dashboard

3. User verifies the proof against the published snapshot root

4. If mismatch: user enters dispute workflow with case ID and resolution policy

Data Rules

PoL must define:

• Rounding and precision rules

• Dust handling

• Pending states treatment

• Account closure handling

• Frozen/restricted account treatment (included/excluded)

Sample PoL Report (Template)

Report: Proof of Liabilities (PoL) Snapshot: YYYY-MM-DD HH:MM UTC Publication Date: YYYY-MM-DD Covered Products: Spot balances (v1) User Verification Method: [Inclusion proof method + how users retrieve it] Changelog: (link)

1) Summary

This report represents the liabilities WorldX owes users within PoL v1 scope at the snapshot time. Users can verify inclusion using the method described below.

2) Liability Totals by Asset

3) Inclusion Verification - User Walkthrough (Template)

1. Open Trust Hub → PoL Snapshot

2. Click Verify my inclusion

3. Download your proof data from your account dashboard:

4. anonymized user identifier

5. asset balances at snapshot

6. inclusion proof payload

7. Verify your proof against the published root:

8. root hash: [ROOT_HASH]

9. your proof should resolve to the root

10. If mismatch:

11. open a dispute

12. receive a case ID

13. investigation follows the Dispute Workflow policy

4) Data Rules

• Rounding and precision rules

• Dust handling

• Treatment of holds and pending withdrawals

• Any exclusions

5) Limitations

• Inclusion verifies snapshot membership, not future solvency.

• Scope is limited to PoL v1 products only.