How to Write a Binance Source of Funds Proof? 6 Scenario Templates

Binance's Source of Funds (SoF) proof is a mandatory requirement for scenarios such as large-volume withdrawals, account unlocking, and Level 3 KYC upgrades. The core principles for preparing a valid SoF are: Amount Closure (proven amount ≥ 1.2x the requested amount), Temporal Continuity (no gaps in records for the past 6-12 months), and Document Authority (issued by official institutions or verifiable third parties). Different sources require different combinations of documents; having them ready at once can reduce audit time by more than 50%. If you need help, contact live support via the Binance Official Website to request a "Standard SoF Template," or open the Binance Official App to upload materials directly to a compliance officer, usually available within 24 hours. This article provides checklists and sample letters for 6 different fund sources.

I. What is Source of Funds (SoF)?

1. Definition and Purpose

SoF (Source of Funds) is a financial compliance term referring to a set of documents that prove the legal origin of a specific sum of money. In the context of Binance, it is used for:

• L3 Institutional KYC: Submitted during initial certification.
• Large Withdrawals: Required for single transactions exceeding 500,000 USDT.
• Account Unlocking: Freezes involving Anti-Money Laundering (AML) suspicions.
• P2P Appeal: Proving that the source of your USDT is legal.

2. Difference from SoW

SoF (Source of Funds) vs. SoW (Source of Wealth):

Concept	Scope	Time Span	Application
SoF	A specific sum of money	A single transaction	Large withdrawal audit
SoW	Overall wealth accumulation	Multi-year career	VIP / Private Banking

Binance requires SoF for most standard scenarios.

3. Three Standards for a Valid SoF

1. Amount Coverage: Proven total ≥ Withdrawal amount × 1.2.
2. Temporal Continuity: Documentation must cover the entire period during which the funds were accumulated.
3. Clear Chain of Custody: From initial source → Intermediate accounts → Current Binance account; every step must be traceable.

II. Scenario 1: Salary/Wages

1. Document Checklist

Document	Requirement	Purpose
Bank Statements (Past 24 Months)	Mandatory	Prove consistent income
Latest Employment Contract	Mandatory	Prove employment relationship
Individual Income Tax (IIT) Records	Mandatory	Prove tax compliance and legality
Payslips/Salary Breakdown	Recommended	Prove salary structure
Business License of Employer	Recommended	Prove the company exists
Certificate of Employment	Recommended	Enhance authenticity

2. Statement Requirements

• Issuer: Must be stamped by the bank.
• Time Span: Complete records for the past 24 months.
• Content: Monthly salary credits, ideally labeled "Salary" or with the company name.
• Format: PDF or clear photos; manually entered Excel sheets are not accepted.

3. Rational Amount Calculation

Example: A monthly salary of 30,000 RMB accumulates to 720,000 RMB over 24 months (≈ 100,000 USDT).

The reasonable withdrawal amount you can apply for is: ≤ 100,000 USDT × 1/1.2 ≈ 83,000 USDT.

4. SoF Cover Letter Template

Source of Funds Declaration (Salary Income)

Name: [Your Name] ID Number: [Your ID] Binance UID: [Your UID] Requested Withdrawal Amount: 80,000 USDT Source of Funds: Salary income from 2024-2025

Declaration:

1. I have been employed at [Company Name] (Business ID: [ID]) since 2024-01, holding the position of [Job Title].
2. My monthly pre-tax income is [Amount] RMB, totaling [Total Amount] RMB over the past 24 months (approx. 100,000 USDT at an exchange rate of 7.2).
3. All salary payments were received via my bank account [Account Number] at [Bank Name]; stamped bank statements for the past 24 months are attached.
4. All income has been taxed according to law, totaling [Tax Amount] over the past 24 months; tax payment certificates are attached.
5. Since 2024-XX, I have converted parts of my salary into USDT and deposited them into Binance via P2P; specific deposit records are available in my account history.

I declare the above information to be true and correct.

Signature: [Your Name] (Handwritten) Date: 2026-04-XX

III. Scenario 2: Business Income

1. Document Checklist

Document	Requirement	Description
Business License	Mandatory	Unified Social Credit Code
Corporate Bank Statements (Past 12 Months)	Mandatory	Prove business scale
Tax Payment Receipts (VAT, CIT)	Mandatory	Proof of legal operation
Shareholder Registration Info	Mandatory	Prove your ownership
Audit Reports (Past 2 Years)	Recommended	Strengthen credibility
Major Customer Contracts	Recommended	Prove business authenticity

2. Amount Calculation

Example: A company has an annual revenue of 5 million RMB and a net profit of 1 million RMB. As a 40% shareholder, your annual dividend is 400,000 RMB.

Reasonable Withdrawal Amount: ≤ (Annual Dividend × After-tax ratio) / 1.2 = (400,000 × 0.8) / 1.2 ≈ 260,000 RMB / 7.2 ≈ 36,000 USDT.

3. SoF Cover Letter Template

Source of Funds Declaration (Business Income)

Name: [Your Name], ID: [Your ID], Binance UID: [Your UID] Requested Withdrawal Amount: 50,000 USDT Source of Funds: Dividend income from personal investment in a company

Declaration:

1. I am a shareholder in [Company Name] (Business ID: [ID]) with a 40% stake.
2. The company's 2024 revenue was 5 million RMB with a net profit of 1 million RMB (Audit report attached).
3. Per the company's dividend policy, I received 400,000 RMB in dividends for 2024, with 500,000 RMB expected for 2025.
4. Dividends were received via my [Bank Name] account [Number]; bank statements are attached.
5. Income tax has been paid at a rate of 20%; tax certificates are attached.
6. At the end of 2025, I converted part of the dividends into USDT and deposited them into my Binance account.

The above statements are true and valid.

Signature: [Your Name] Date: 2026-04-XX

IV. Scenario 3: Investment Gains (Stocks/Funds)

1. Document Checklist

Document	Requirement
Securities Account Statements (Past 24 Months)	Mandatory
Buy/Sell Transaction Records	Mandatory
Dividend Distribution Receipts	Mandatory
Proof of Initial Capital Source (Salary/Business)	Mandatory
Certificate of Account Opening	Recommended

2. Key Point

You must have proof of the initial capital! Auditors focus most on: Where did the money to buy the stocks come from?

If you claim to have made 1 million RMB from stocks but cannot prove the source of the initial 300,000 RMB capital, the audit will be rejected.

3. SoF Cover Letter Template

Source of Funds Declaration (Stock Investment Gains)

Name: [Your Name] ID: [Your ID] Binance UID: [Your UID] Requested Withdrawal Amount: 100,000 USDT

Declaration:

1. I opened an account at [Brokerage Name] in 2021 (Account No: [No]) with an initial capital of 500,000 RMB.
2. Source of capital: Savings from salary between 2018-2021 (Salary statements attached).
3. Between 2021-2025, I invested in blue-chip stocks such as [Stock Name], resulting in a total profit of 1.2 million RMB.
4. All transaction records are attached (PDF statements from the brokerage).
5. In 2025, I converted part of the profits into USDT and deposited them into Binance.
6. Capital gains tax has been paid at 20%; tax certificates are attached.

I declare the above to be true.

Signature: [Your Name] Date: 2026-04-XX

V. Scenario 4: Cryptocurrency Earnings

1. Document Checklist

Document	Requirement	Description
Full History from Other Exchanges	Mandatory	API exports from OKX, Coinbase, etc.
On-chain TX Hashes & Explorer Screenshots	Mandatory	Prove on-chain fund flow
Fiat Payment Proof for Initial Crypto Purchase	Mandatory	Prove origin of initial capital
Wallet Address Signature Proof	Recommended	Prove ownership of the address
Tax Filing Records	Recommended	Required in some jurisdictions

2. Complete Evidence Chain Example

2020-06: Transfer 50,000 RMB from salary card to OTC merchant → Buy 10,000 USDT (Attach bank statement, OTC screenshots)

↓

2020-06 to 2024-12: Operated on OKX exchange, USDT increased to 50,000 (Attach OKX quarterly statements)

↓

2025-01: Withdraw 50,000 USDT from OKX to personal hardware wallet 0xABC (Attach on-chain TX hash)

↓

2025-03: Deposit 50,000 USDT from 0xABC to Binance (Attach on-chain TX hash)

↓

2026-04: Apply to withdraw 40,000 USDT from Binance.

This chain requires documentation for every single step.

3. SoF Cover Letter Template

Source of Funds Declaration (Crypto Investment Gains)

Name: [Your Name] ID: [Your ID] Binance UID: [Your UID] Requested Withdrawal Amount: 40,000 USDT

Source of Funds: Crypto investment gains from 2020-2025

Detailed Chain:

1. 2020-06: 50,000 RMB from salary used to buy 10,000 USDT via OTC (Statements and screenshots attached).
2. 2020-06 to 2024-12: Operated on OKX exchange; spot + DeFi gains grew the balance to 50,000 USDT (OKX statements attached).
3. 2025-01: Withdrawn from OKX to Ledger hardware wallet (Address 0xABC, TX Hash 0xYYY).
4. 2025-03: Deposited from 0xABC to Binance (TX Hash 0xZZZ).
5. 2026-04: Applied to withdraw 40,000 USDT to 0xABC for long-term holding.

Legal source of initial capital: Salary income (Taxed). Profit portion: Declared as "Property Transfer Income" per local regulations.

True and correct; all hashes, statements, and tax records attached.

Signature: [Your Name] Date: 2026-04-XX

VI. Scenario 5: Inheritance/Gifts

1. Document Checklist

Document	Requirement
Notarized Inheritance/Gift Deed	Mandatory
ID & Death Certificate of Original Holder (Inheritance)	Mandatory
ID of the Donor (Gift)	Mandatory
Source of Funds Proof of Original Holder	Recommended
Estate Distribution Agreement (Multi-heir)	Recommended

2. Key Point

Inheritance/gifts are legal and often tax-exempt sources of funds, but they must be backed by notarized documents.

3. SoF Cover Letter Template

Source of Funds Declaration (Inheritance)

Name: [Your Name] ID: [Your ID] Binance UID: [Your UID] Requested Withdrawal Amount: 300,000 USDT

Source of Funds: Inheritance from father

Declaration:

1. My father, [Name] (ID: [ID]), passed away in 2024-XX (Death certificate attached).
2. Per Notarial Deed No. [No] (2024), I am the sole legal heir.
3. The inheritance included 3 million RMB in bank deposits and 300,000 USDT in a hardware wallet (Ledger).
4. Legal source of father's funds: Employee of [Company] prior to retirement, pension, and personal savings.
5. Inheritance tax procedures have been completed per law (Tax certificate attached).
6. In 2025, I transferred the USDT from my father's wallet to mine (TX Hash 0xXXX) and then to Binance.

I declare the above to be true.

Signature: [Your Name] Date: 2026-04-XX

VII. Scenario 6: Borrowed Funds

1. Document Checklist

Document	Requirement
Notarized Loan Agreement	Mandatory
ID of the Lender	Mandatory
Lender's Source of Funds Proof	Mandatory
Repayment Schedule	Mandatory
Guarantee Agreement	Recommended

2. Key Point

Borrowed funds are considered "bridge capital," and Binance audits them most strictly:

• You must prove the lender has legal funds.
• You must prove the purpose of the loan (investment agreement, business receipts).
• The repayment plan must be realistic and feasible.

3. SoF Cover Letter Template

Source of Funds Declaration (Loan)

Name: [Your Name] ID: [Your ID] Binance UID: [Your UID] Requested Withdrawal Amount: 100,000 USDT

Source of Funds: Loan from [Name] for crypto investment

Declaration:

1. In 2026-02, I borrowed 800,000 RMB from [Name] (ID: [ID]) for 12 months at a 5% interest rate (Notarized agreement attached).
2. [Lender's Name] is the owner of [Company Name]; funds originate from business dividends.
3. Purpose: Long-term crypto investment (stipulated in the contract); not for illegal activities.
4. Funds were transferred to my account via [Bank Name] (Statement attached).
5. I have a repayment plan: Monthly installments of [Amount] plus interest from my salary.
6. In 2026-03, I converted the loan into USDT and deposited it into Binance.

The above is true, and the loan relationship is notarized.

Signature: [Your Name] Date: 2026-04-XX

VIII. Best Practices for Submitting SoF

1. File Naming Convention

Name files by "Category + Date" for easier auditing:

• 01_Bank_Statement_2024-01-to-2025-12.pdf
• 02_Employment_Contract_2024.pdf
• 03_Tax_Certificate_2024.pdf

2. One-time Submission

Avoid uploading in batches, which forces the auditor to follow up repeatedly. Prepare all materials and upload them as a complete package.

3. Include an Index File

Create a 00_Index.pdf listing all attachments:

• Attachment 1: Bank Statements
• Attachment 2: Employment Contract
• Attachment 3: Tax Certificate
• ...

4. Translation Requirements

Non-English/Chinese materials require translations:

• Translated by an official translation company (with company stamp).
• Or a certified translation from a notary office.
• Machine translations (e.g., Google Translate) are not accepted.

5. Electronic Signatures

While e-signatures (Adobe Acrobat) are acceptable, for crypto-related SoF, it is recommended to scan a handwritten signature to enhance formality.

FAQ

Q1: Is notarization mandatory for SoF?

A: Not for most materials. It is only required for inheritance, gifts, and loans. Salary, business, and investment scenarios usually only require original documents (statements, contracts) plus your own cover letter.

Q2: How do I prove funds from cash deposits?

A: Cash deposits are the hardest to audit. You must trace the source of the cash:

• If it was a cash salary: Provide payslips + tax records.
• If it was business revenue: Provide turnover records.
• If it is completely untraceable: It cannot serve as a legal SoF.

Q3: How do I prove large transfers between friends/relatives?

A: You must provide:

• The sender's source of funds.
• A loan or gift agreement.
• An explanation of the relationship (father-son, spouse, friend).

For large relative transfers (> 500,000), it is recommended to notarize beforehand to avoid future questioning.

Q4: How do I prove the "initial capital" for crypto?

A: The core principle is "tracing back to fiat." That is: On a certain day, a certain sum of fiat (RMB, USD) bought your initial crypto, and that fiat has a complete proof of origin. On-chain "airdrop gains, mining rewards, or DeFi gains" cannot stand alone as SoF; they must be linked back to fiat evidence.

Q5: Can I use an agency to handle my SoF?

A: Not recommended. Agency-handled SoF often uses forged or patched documents. Binance has a professional compliance team that can identify Photoshopped or manipulated materials. If identified as a fake SoF, your account will be permanently banned and assets may be denied for return.

SoF is an advanced skill for risk-control scenarios. Looking for basic account protection? Return to Categories and select "Security Hardening" to learn about 2FA and other basic setups.