How to Verify Flipster Account Balance - Merkle Tree Verification

At Flipster, transparency and security are top priorities. To ensure every user deposit is fully backed and verifiable, Flipster provides Proof of Reserves (PoR) along with Merkle Tree verification, allowing users to independently confirm their balances.

In this guide, we’ll walk you through how to verify your Flipster balance using Merkle Tree self-verification (note: verification is only available on the web), giving you confidence that your assets are fully backed and secure.

How Does Flipster Ensure Transparency Of Users’ Funds

Proof of Reserves (PoR)

Proof of Reserves (PoR) is a cryptographic verification system that ensures Flipster maintains 100% of user deposits on a 1:1 basis. This means that for every asset deposited, an equivalent amount is securely held in Flipster’s reserves, ensuring full backing of user funds.

To uphold transparency and trust, Flipster conducts daily PoR updates and independent audits, allowing users to verify that their assets remain fully backed at all times. Additionally, Flipster adheres to a strict zero rehypothecation policy, meaning that customer funds are never lent, reinvested, or misused in any way.

Merkle Tree

A Merkle Tree is a cryptographic structure designed to enable secure, efficient, and tamper-proof verification of large datasets. Widely used in blockchain technology, it ensures data integrity without exposing sensitive user information, making it an essential tool for verifiable proof mechanisms in decentralized systems.

Why Merkle Tree Verification Matters

• Secure & Immutable – Guarantees that data remains unaltered and tamper-proof.

• User Privacy – Enables balance verification without exposing personal financial details.

• Independent Verification – Users can confirm their funds are part of Flipster’s reserves at any time.

How Flipster Uses the Merkle Tree for Proof of Reserves

Flipster integrates Merkle Tree technology to allow users to independently verify their asset holdings while maintaining privacy. Each user's balance is converted into a hashed value and added to the Merkle Tree. The Merkle Root—the top-level hash—acts as a cryptographic summary of all user balances, ensuring individual financial data remains confidential. This system allows users to verify that their funds are part of Flipster’s reserves without disclosing personal data.

Step-by-Step Guide on How to Verify Your Flipster Balance Using Merkle Tree Verification

1. Navigate to Flipster’s Proof of Reserves Page

2. Click ‘View my audit data’

3. Select the date you want to verify and click ‘Details’ to view more information

4. Click on 'Download data' to obtain your Merkle proof file and 'Open source link' to download the verification tool

5. Run the verification tool. The verification steps may vary depending on your operating system.

Windows

1. Download your data file (merkle_proof.json) and the open-source verification tool (verifier_window_amd64.exe or verifier_window_arm64.exe).

2. Place the tool in a new folder named verification (temporarily).

3. Create a data folder inside the verification folder, and place the downloaded merkle_proof.json file inside it.

4. Open the command prompt (cmd) and run the open-source file.

• Set the path

Command: cd {file path of the new folder}

• Run the verification tool

Command: {open-source_filename}

If you see "Merkle proof is valid!", the verification is complete.

macOS

1. Download your data file (merkle_proof.json) and the open-source verification tool (verifier_mac_intel or verifier_mac_m1).

2. Place the tool in a new folder named verification (temporarily).

3. Create a data folder inside the verification folder, and place the downloaded merkle_proof.json file inside it.

4. Set the file permissions for the open-source file.

• System Settings > Privacy & Security > Allow permissions 

5. Open Terminal and run the open-source file.

• Set the path

Command: cd {file path of the new folder}

• Grant execute permission to the file

Command: chmod +x {opensource_filename}

• Run the verification tool

Command: ./{open-source_filename}

If you see "Merkle proof is valid!", the verification has been completed.

Linux

1. Download your data file (merkle_proof.json) and the verification tool (verifier_linux_amd64 or verifier_linux_arm64).

2. Place the tool in a new folder named verification (temporarily).

3. Create a data folder inside the verification folder, and place the downloaded merkle_proof.json file inside it.

4. Set the file permissions for the open-source file.

Command: chmod +x {open-source_filename}

5. Run the open-source file.

Command: ./{open-source_filename}

If you see "Merkle proof is valid!", the verification has been completed. Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with a significant risk of loss due to its high price volatility, and is not suitable for all investors. Please refer to our Terms.