BitMEX’s Fully Fledged PoL System Now Live & Operational

BitMEX is delighted to announce that the Proof of Liability (PoL) system is now fully live and operational. All BitMEX depositors can now verify their individual liability is included in the total exchange liability balance. This self verification process can be conducted without a third party auditor. Client privacy is preserved, because account balances are randomly split into multiple leaves of the Merkle tree. Reserve and Liability snapshots are published twice a week on Tuesdays and Thursdays.

In order to search for your liability in the leaves of the Merkle tree, you can use your “accountNonce” for multiple snapshots or just the “nonce” for individual snapshots. These nonces are now provided to every BitMEX depositor and can be found on the website when you log into your account. The nonces are available in the “My Account” page, as shown in the image below. Once you have the nonce, you can search across all the leaves of the Merkle tree looking for a collision. The leaves where this collision occurs are your balance.

How to find your nonce?

How to conduct the PoL process?

Step	Name	Details
1	Download the liabilities file	Download the latest liability snapshot here: https://public.bitmex.com/?prefix=data/porl/
2	Install the tool	The tools to verify the reserves and liabilities are open source and can be downloaded here: https://github.com/BitMEX/proof-of-reserves-liabilities
3	Open the Terminal	If you are using a Mac or Linux, you open your Terminal application to run the necessary commands.
4	Go to the directory	You need to go to the directory where you downloaded the software package from GitHub. In our case we typed the following command: `CD ~/Downloads/proof-of-reserves-liabilities`
5	Check system requirements	In order to check the system has the correct applications installed, run the following command: `pip3 install -r requirements.txt`
6	Execute the proof of liabilities	Run the below command `python3 validate_liabilities.py --proof "LIABILITY FILE" --account "ACCOUNT ID" --account_nonce "ACCOUNT NONCE"`