#BTCReserveStrategy Binance’s reserve strategy ensures transparency and user fund security. It uses a Merkle Tree-based Proof of Reserves system to show that user assets are held 1:1. The Secure Asset Fund for Users (SAFU), funded by 10% of trading fees, acts as emergency insurance. Most assets are stored in secure cold wallets, while hot wallets are used for daily operations. Binance performs regular internal and third-party audits to prove solvency. The exchange does not operate on a fractional reserve model, meaning it does not lend or invest user funds without consent, reinforcing trust and financial stability on the platform.