Proof of Reserve
Overview
Section titled “Overview”PIPO maintains transparent proof of reserves for both Call (SPV-backed) and Put (USDC-backed) warrants. This document details the verification mechanisms, audit processes, and public reporting.
Verification Methods
Section titled “Verification Methods”On-Chain (Put Warrants)
Section titled “On-Chain (Put Warrants)”Put Reserve Verification: REAL-TIME
Anyone can verify at any time:├── Total put tokens outstanding: Smart contract query├── USDC in vault: balanceOf(vault) on USDC contract├── Reserve ratio: vault_balance / tokens_outstanding└── Result: Binary pass/fail
No trust required. Fully transparent.Off-Chain (Call Warrants)
Section titled “Off-Chain (Call Warrants)”Call Reserve Verification: PERIODIC
Verification layers:├── Monthly: Internal reconciliation├── Quarterly: Fund administrator attestation├── Annually: Big 4 accounting firm audit└── On-demand: Cap table confirmation from company
Some trust required. Multiple verification sources.On-Chain Verification Tools
Section titled “On-Chain Verification Tools”Verification Contract
Section titled “Verification Contract”// SPDX-License-Identifier: MITpragma solidity ^0.8.19;
interface IPIPOProofOfReserve { struct ReserveStatus { uint256 timestamp; uint256 putLiability; uint256 putReserve; uint256 reserveRatio; // basis points (10000 = 100%) bool sufficient; }
// Get current reserve status for all put warrants function getGlobalReserveStatus() external view returns (ReserveStatus memory);
// Get reserve status for specific warrant function getWarrantReserve(address warrant) external view returns ( uint256 outstanding, uint256 collateral, bool sufficient );
// Verify specific amount can be settled function canSettle(address warrant, uint256 amount) external view returns (bool);
// Historical snapshots (for auditors) function getHistoricalSnapshot(uint256 blockNumber) external view returns (ReserveStatus memory);}Public Dashboard
Section titled “Public Dashboard”┌─────────────────────────────────────────────────────────────────┐│ PROOF OF RESERVE - LIVE │├─────────────────────────────────────────────────────────────────┤│ ││ Last Updated: 2 seconds ago (Block #15,234,567) ││ ││ ═══════════════════════════════════════════════════════════ ││ PUT WARRANTS (100% On-Chain Verifiable) ││ ═══════════════════════════════════════════════════════════ ││ ││ Aggregate Status: 🟢 FULLY RESERVED ││ ││ ├── Total Liability: $3,200,000 ││ ├── Total Collateral: $3,200,000 USDC ││ └── Reserve Ratio: 100.00% ││ ││ By Warrant: ││ ┌────────────────────────────────────────────────────────┐ ││ │ SPACEX-PUT-180B │ $1,500,000 │ 100% │ ✅ Verified │ ││ │ SPACEX-PUT-150B │ $800,000 │ 100% │ ✅ Verified │ ││ │ OPENAI-PUT-80B │ $500,000 │ 100% │ ✅ Verified │ ││ │ STRIPE-PUT-60B │ $400,000 │ 100% │ ✅ Verified │ ││ └────────────────────────────────────────────────────────┘ ││ ││ [Verify on BscScan] [Download Proof] [API Access] ││ ││ ═══════════════════════════════════════════════════════════ ││ CALL WARRANTS (SPV Attestation) ││ ═══════════════════════════════════════════════════════════ ││ ││ Aggregate Status: 🟢 FULLY RESERVED (Last Audit: Oct 1) ││ ││ ├── Total Liability: $12,500,000 ││ ├── SPV Holdings (Attested): $13,200,000 ││ └── Reserve Ratio: 105.6% ││ ││ [View Attestation Letter] [Auditor Report] [FAQ] ││ │└─────────────────────────────────────────────────────────────────┘Attestation Process
Section titled “Attestation Process”Quarterly Attestation (Calls)
Section titled “Quarterly Attestation (Calls)”Quarterly Attestation Flow:
Week 1: Data Collection├── Export cap table positions for each SPV├── Compile outstanding warrant data├── Prepare valuation supporting documents└── Internal reconciliation
Week 2: Fund Administrator Review├── Administrator verifies cap table entries├── Confirms custody of share certificates/records├── Reconciles against PIPO records└── Prepares attestation draft
Week 3: Sign-Off├── Administrator issues signed attestation letter├── Letter published to website/IPFS├── Hash recorded on-chain for timestamping└── Email notification to subscribers
Deliverable: Signed PDF + On-chain hashAttestation Letter Contents
Section titled “Attestation Letter Contents”[FUND ADMINISTRATOR LETTERHEAD]
ATTESTATION OF HOLDINGS
To: PIPO Platform Users and StakeholdersDate: October 1, 2025Period: Q3 2025
We, [Fund Administrator Name], as fund administrator for PIPO HoldingsLtd and its subsidiary SPVs, hereby attest that as of September 30, 2025:
SPACEX HOLDINGS (SPV-001):- Shares held: 100,000 Common Stock- Cap table confirmation: Verified- Custodian: [Name], Account #XXXX
OPENAI HOLDINGS (SPV-002):- Shares held: 50,000 Common Stock- Cap table confirmation: Verified- Custodian: [Name], Account #XXXX
[Additional underlyings...]
Total Holdings Value (at last funding round prices): $13,200,000Total Warrant Liability: $12,500,000Reserve Ratio: 105.6%
This attestation is provided for informational purposes based onrecords available to us. It does not constitute an audit opinion.
[Signature][Fund Administrator Name][License Number]Annual Audit
Section titled “Annual Audit”Annual Audit Coverage:├── Financial Statements│ ├── SPV balance sheets│ ├── Warrant liability calculation│ └── Revenue recognition├── Controls Testing│ ├── Share acquisition process│ ├── Custody procedures│ ├── Settlement controls│ └── Access controls├── Reserve Verification│ ├── Cap table confirmations (100%)│ ├── Custodian confirmations│ └── Valuation methodology review└── Smart Contract Review ├── USDC vault balance verification ├── Token supply reconciliation └── Settlement logic testingAuditor Selection
Section titled “Auditor Selection”| Criteria | Requirement |
|---|---|
| Reputation | Big 4 or equivalent |
| Experience | Digital assets, SPVs |
| Independence | No conflicts of interest |
| Jurisdiction | Cayman / US licensed |
| Report Type | ISAE 3402 / SOC 2 |
Real-Time Monitoring
Section titled “Real-Time Monitoring”Chainlink Proof of Reserve (Future)
Section titled “Chainlink Proof of Reserve (Future)”Potential Chainlink Integration:
For Put Reserves:├── Chainlink nodes query vault USDC balance├── Compare against outstanding tokens├── Publish reserve ratio on-chain├── Trigger alerts if ratio < 100%└── Integrate with DeFi protocols
Benefits:├── Decentralized verification├── Real-time alerts├── Third-party credibility└── DeFi composabilityInternal Monitoring
Section titled “Internal Monitoring”PIPO Internal Monitoring:├── Every block: Put vault balance check├── Hourly: Reserve ratio calculation├── Daily: Reconciliation report├── Weekly: Management review└── Monthly: Board report
Alerts:├── Put ratio < 100%: CRITICAL (impossible with current design)├── Put ratio < 102%: WARNING (thin buffer)├── Call attestation overdue: WARNING└── Custodian non-responsive: CRITICALTransparency Reports
Section titled “Transparency Reports”Monthly Summary
Section titled “Monthly Summary”PIPO Monthly Transparency Report - October 2025
RESERVE STATUS├── Put Reserves: 100.0% (fully collateralized)├── Call Reserves: 105.6% (over-collateralized)└── Overall Status: HEALTHY
ACTIVITY├── New warrants issued: $2.5M├── Warrants exercised: $0.8M├── Warrants expired: $1.2M└── Net change: +$0.5M
UNDERLYING CHANGES├── SpaceX: No material events├── OpenAI: Series C announced (price updated)├── Stripe: IPO rumors (monitoring)
OPERATIONAL├── Uptime: 99.97%├── Settlement success rate: 100%├── Oracle disputes: 0└── Security incidents: 0
[Full Report PDF] [Historical Data]API Access
Section titled “API Access”Public Endpoints
Section titled “Public Endpoints”// Get current reserve status (no auth required)GET /api/v1/proof-of-reserve
// Response{ timestamp: "2025-10-15T12:00:00Z", blockNumber: 15234567, put: { totalLiability: 3200000, totalCollateral: 3200000, reserveRatio: 1.0, verified: true, verificationMethod: "ON_CHAIN" }, call: { totalLiability: 12500000, attestedHoldings: 13200000, reserveRatio: 1.056, lastAttestation: "2025-10-01", attestor: "Fund Administrator Name", verificationMethod: "ATTESTATION" }, overall: { status: "HEALTHY", alerts: [] }}
// Get specific warrant reserveGET /api/v1/proof-of-reserve/SPACEX-PUT-150B-Q42025
// Get historical snapshotsGET /api/v1/proof-of-reserve/history?from=2025-01-01&to=2025-10-15Verification Script
Section titled “Verification Script”// Users can independently verifyimport { ethers } from 'ethers';
const provider = new ethers.JsonRpcProvider('https://bsc-mainnet.infura.io/v3/...');
const USDC_ADDRESS = '0x...';const VAULT_ADDRESS = '0x...';const PUT_TOKEN_ADDRESS = '0x...';
async function verifyReserve() { const usdc = new ethers.Contract(USDC_ADDRESS, ['function balanceOf(address) view returns (uint256)'], provider); const putToken = new ethers.Contract(PUT_TOKEN_ADDRESS, ['function totalSupply() view returns (uint256)'], provider);
const vaultBalance = await usdc.balanceOf(VAULT_ADDRESS); const totalSupply = await putToken.totalSupply();
console.log(`Vault Balance: ${ethers.formatUnits(vaultBalance, 6)} USDC`); console.log(`Total Supply: ${ethers.formatUnits(totalSupply, 6)} tokens`); console.log(`Reserve Ratio: ${(vaultBalance * 100n / totalSupply)}%`); console.log(`Fully Reserved: ${vaultBalance >= totalSupply}`);}
verifyReserve();Incident Response
Section titled “Incident Response”Reserve Shortfall Protocol
Section titled “Reserve Shortfall Protocol”If Put Reserve < 100% (theoretical - should never happen):
T+0 minutes: Automatic alert triggered├── Trading paused for affected warrant├── Team notified (PagerDuty)└── Investigation begins
T+15 minutes: Initial assessment├── Identify cause (bug, exploit, operational error)├── Quantify shortfall└── Activate emergency fund if needed
T+1 hour: Public communication├── Status page updated├── User notification└── Estimated resolution time
T+4 hours: Resolution├── Shortfall covered from emergency fund├── Root cause identified├── Trading resumed (if safe)
T+24 hours: Post-mortem├── Detailed incident report├── Remediation plan└── Compensation if warranted