Liability Mapping

Liability mapping is the process of aggregating and categorizing all obligations an exchange owes to its users. This includes tracking deposits, pending withdrawals, and interest-bearing account balances across various assets.

Accurate mapping is essential for matching liabilities against actual on-chain holdings during a solvency audit. It requires robust internal database management to ensure that all customer claims are accounted for in real-time.

If liability mapping is flawed, an exchange may appear solvent while actually being under-collateralized. This process is a critical component of internal risk control and external financial reporting for crypto-native institutions.