Liability Aggregation

Liability Aggregation is the process of summing all individual user balances within a platform to determine the total debt the platform owes to its customers. This total is then compared against the platform's verifiable assets to check for solvency.

Accurate aggregation is technically challenging due to the high volume of transactions and the need to maintain user privacy. Advanced protocols use automated scripts to perform this aggregation in real time, ensuring that the Proof of Reserves remains current.

Without precise aggregation, audits are susceptible to errors or intentional manipulation.