CertiK Research Team: Exchanges Should Set USD Limits for Hot Wallets

深潮 TechFlow reported on November 10, citing Cointelegraph, that the research team at security firm CertiK recommends crypto exchanges set clear USD caps on assets held in hot wallets, rather than relying solely on cold storage ratios to measure security.

CertiK said cold storage ratios can measure online risk exposure but cannot serve as a standalone security score; overly rigid storage ratios may also slow withdrawals, force exchanges to move funds hastily, and concentrate risk in key management systems.

The team recommends that exchanges set hot wallet limits by asset and blockchain, adopting the strictest of three constraints: the customer liability ratio, estimated withdrawal demand, and an absolute loss cap determined by their own financial capacity and recovery capability, while using circuit breakers to control potential losses.

Source: 深潮 TechFlow