I would actually think that 5% of total assets is a lot, especially considering that exchanges may not have all deposits in liquid BTC and invested in other assets to earn interest.
it certainly is. with a rinky-dink exchange like exmo, i would not assume they are solvent after taking a hit like this. 5% sounds small in relative terms but just looking at the BTC, ETH, and USDT losses alone, we're talking $8 million + lost.
that represents 1/3 of exmo's daily volume. the number of BTC stolen represents 3/4 of their entire BTC/USD order book!
![Shocked](https://bitcointalk.org/Smileys/default/shocked.gif)
How they deal with this will be interesting. Will shareholder equity simply take a hit to cover the 5%? Or do all depositors just lose 5% of their balance held with the exchange? The paths that can be taken have drastically different legal implications.
they claim to be covering all losses from their own pocket:
Most importantly, we want to assure you that if any user fund is affected by this incident, it will be covered completely by EXMO.
i'm skeptical though. this is definitely how fractional reserve begins on some exchanges. they get hacked for more than they can afford, then they go into damage control mode and just hope they can cover withdrawal requests.
i have similar concerns about kucoin.