Transparency is one of the founding pillars of Vaultoro's mission statement.
"Transparency and having glass books is the number 1 priority for Vaultoro.
The blockchain has given us the perfect tools to enable total transparency, easily giving members absolute proof of solvency. Sadly the bitcoin community needed the MtGox fiasco to force a change in mindset from "oh they have been around for ages" to "I want proof of solvency". So in a post MtGox world, the free market is demanding higher transparency and Vaultoro is an example of the next generation of fully transparent exchanges."
Joshua Scigala, - Director at Vaultoro.com
So how do I check the Audit?
Vaultoro has 3 wallets types
A hot wallet is a wallet that is hosted online and is used to quickly send and receive payments.
This wallet holds bitcoins as soon as they get sent to Vaultoro by users. Vaultoro quickly sends most bitcoins that are sent to the hot wallet to a multi-signature cold wallet. Only a small amount of bitcoins stay in the hot wallet.
Warm wallet (hot proxy)
A warm wallet or proxy hot is purely here for the auditing purpose. This wallet holds an amount of bitcoin slightly above the amount of bitcoins in the hot wallet and its address is public.
This is done because there are thousands of hot wallet addresses and it is not very efficient or private for our users to publicly reveal these addresses for public audit.
Multi-Sig Cold wallet.
The majority of bitcoins held by Vaultoro are stored in multi-sig cold wallets. Cold wallets are wallets that have never seen the internet, This means that there is no way for a hacker to take them because the private keys have never been online. On top of this security, all cold wallets are multi-signature wallets, so it takes multiple people so sign transactions before funds can be released to refund a hot wallet.
The addresses for these cold wallets are listed on Vaultoro under the audit tab.
How do I Audit the Vaultoro holdings?
On the audit page, Vaultoro publishes an anonymised list of every account on Vaultoro. This will show how much bitcoin and gold every account holds on vaultoro, including a sum of all bitcoins and gold.
Every account has a secret identity code, which is viewable in the accounts section. Only you know your secret ID code and can cross check this code on the public audit page.
You can go to the bottom of the audit page and see the sum of all bitcoins and gold that should be held by Vaultoro. You can then cross check that sum with the sum of the warm and cold wallets. The sum of both warm and cold wallets should always be greater than the sum of all bitcoins shown on the anonymised daily audit.
Step by step
- Navigate to the audit page in the left navigation
- Make sure your holdings are the same as on your holdings page
- Check the sum of all the bitcoin held by Vaultoro
- Check that this sum is less than the total held in the cold and proxy hot wallets.
Every month we will move a pre-announced amount of coins from the cold and proxy hot wallets to prove that we have control of both wallets.