Binance can cut a winning Bitcoin hedge even when customer assets are backed

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.