The Balance Sheet
What is a balance sheet?
You may have seen this and wonder what it is.
Well, I'm here to explain it to you. A Balance Sheet tells you the total assets and liabilities for an account. In this example that "Account" is RPI Coin.
Balance sheets are important. They tell you where all the funds are. They tell you if you have too much, or if you have too little.
A perfect balance sheet has a Balance of 0 (Zero)
Why Zero? Because that means everything is "in balance", like two sides of a scale. In our case we have "Liabilities", which are the balances of user accounts. We also have "Assets", which are what we are holding in our wallets.
A balance sheet is called "Out Of Balance" when the number is NOT ZERO. This can be in either direction, positive or negative. When the balance is negative, that means we are holding less than what customers have on account in their balance. When the balance is positive, that means we have a surplus of the coin in our wallets and have more than customers have on deposit.
So let's inspect one. Step by step. I will explain what each of these items mean below.
A) Last Updated time. This tells you when the system last updated the balance sheet. You can compare it with the system time at the bottom left of the website. It should be pretty recent.
B) Liabilites. This is a subsection describing everything that is currently owed (to users).
C) Customer funds on deposit. This is the balance held for users that they are able to use on the website.
D) Customer funds pending deposit. This is the balance of funds that are incoming in the network and have not yet reached the required number of confirmations to credit the user. Once a transaction is confirmed, then it becomes a deposit. Usually the wallet will report to us that we have that balance at the first confirmation, but many assets we require 3 or more confirmation.
E) Customer funds pending withdrawals. These are assets that have been removed from a users balance and are preparing to send out from our wallet. Until we send the transaction on the network, we still have the asset in our wallet.
F) Total Liabilites. This is the total of everything we owe. Customer balance + Pending Incomings + Pending Outgoings.
G) Assets. In Deposit wallet. This is the value of the assets held in our deposit wallet system. We have two wallets for each coin. A deposit wallet where assets come in, and a withdrawal wallet where assets go out.
H) In transit Dep -> WD Wallet. These are the funds the system is moving from the deposit wallet system into the withdrawal wallet system, which have not yet been confirmed as posted. This consolidates the assets, which makes it easier to send them out when it's time to make a withdrawal.
I) In Withdrawal Wallet. This is the balance of the withdrawal wallet. This is the wallet where all withdrawals are performed from. Usually it is a single addresss, but the withdrawal wallet may also contain come change addresses that were created during the transaction sending process.
J) In Safe Storage. These are addresses which were generated for off-site, off-network storage of assets. These are not wallets, but just keys. We store the safe wallet keys in very safe locations. Safe wallets cannot be accessed by any unauthorized personnel.
K) Total Assets. This is the total of all the assets the wallets are reporting to us.
L) Balance. This number represents whether we are in balance. The percentage indicator is a better indicator of balance. The percent number you want to see is 100%. In this example you can see we have 135%, this is because this wallet sometimes stakes. In general we try to prevent staking to keep our numbers in balance. If this number drops below 90%, then a problem may be occurring.
M) Liabilities Est. USD Value. This is a USD value of the the Total Liabilities of this asset.
N) Assets Est. USD Value. This is a USD value of the the Total Assets of this asset.
O) Balance Est. USD Value. This is the USD value of the "Balance". It's either a surplus (in green), or a deficit (in red)
P) Signature files. These are signatures which you can verify with your software client that we actually own the address in question.