Terms for Assetiko's tokenized gold product.

1. Introduction

These Product Terms govern the issuance, holding, transfer, trading and redemption of XAUa, Assetiko's tokenized gold product issued natively on XRPL and Stellar by Assetiko Commodities Ltd.

XAUa is designed to provide tokenized exposure to gold. Each XAUa represents one fine troy ounce of gold exposure supported by a diversified reserve portfolio that may include physical gold, gold ETFs or ETCs, gold certificates, cash, cash equivalents and supported digital settlement assets.

By acquiring, holding, transferring or redeeming XAUa, each holder agrees to these Product Terms, the XAUa Reserve Methodology, the Redemption Policy, the Risk Disclosure, the Fee Schedule and any applicable platform or wallet terms.

2. Product description

XAUa is a tokenized gold commodity product issued natively on XRPL and Stellar. Each XAUa on either supported network is intended to correspond to one fine troy ounce of gold exposure under the same consolidated reserve framework.

XAUa is not a fiat currency, bank deposit, money market fund, share, unit in an ETF, debt instrument or legal tender.

3. Unit reference

This unit reference is used for reserve measurement, valuation, issuance and redemption calculations.

Holding XAUa does not mean that the holder owns a specific numbered gold bar, ETF share, gold certificate or custodian account. Holder rights are contractual and limited to the rights expressly stated in these Product Terms.

4. Legal nature of XAUa

XAUa represents a contractual right against the issuer according to these Product Terms. Unless expressly stated otherwise in a separate written agreement, XAUa does not provide specific bar ownership, ETF ownership, certificate ownership, shareholder rights, bank deposit protection, a government guarantee or unconditional physical delivery.

5. Reserve methodology

The issuer maintains reserves in accordance with the published XAUa Reserve Methodology. The reserve objective is to maintain reserve assets with a gold-equivalent value equal to or greater than total XAUa obligations outstanding.

These ranges are policy guidelines and may temporarily vary due to issuance activity, redemption activity, market disruption, settlement timing, liquidity management, custodian transfers or extraordinary events.

6. Reserve coverage

The issuer seeks to maintain a reserve coverage ratio of at least 100.00%.

Total XAUa obligation value is generally calculated by multiplying XAUa outstanding by the applicable gold reference price. Coverage calculations may reflect fees, liabilities, settlement obligations, valuation adjustments, counterparty haircuts and other product-related deductions.

7. Issuance

New XAUa may be issued when the issuer determines that sufficient reserve assets have been acquired, allocated, confirmed or otherwise made available under the Reserve Methodology.

The issuer may issue XAUa through direct institutional subscription, authorized participant creation, treasury release, market-making operations or other approved issuance channels. The issuer shall not knowingly release XAUa into circulation if doing so would cause reserve coverage to fall below the required threshold.

8. Transfers and holding requirements

XAUa is issued as an XRPL issued currency and as a native Stellar asset. The issuer may require holders to satisfy eligibility, onboarding, wallet verification, jurisdictional and compliance requirements before they may hold, receive, transfer, trade or redeem XAUa on either network.

Where authorization controls are enabled, only approved accounts may hold or receive XAUa. XRPL trust-line settings and Stellar trustline authorization, revocation or clawback controls are network-specific. Transfers may be delayed, rejected, frozen, revoked or restricted where permitted by the applicable network and required by law, sanctions rules, court order, regulatory direction, issuer policy, technical conditions or compliance review.

9. Trading

XAUa may trade on network-specific markets, including XAUa / USDV on XRPL and Stellar, and may also trade against other supported assets. Prices, liquidity, spreads and execution may differ by network. The market price of XAUa may differ from the reference value due to liquidity, demand, supply, volatility, redemption availability, fees, network conditions or market disruption.

The issuer does not guarantee secondary market liquidity, exchange availability, price stability or continuous trading.

10. Digital redemption

Eligible holders may redeem XAUa for supported digital settlement assets. The issuer may add, remove, pause or replace supported settlement assets at any time where operationally, commercially or legally necessary.

Redeemed XAUa may be burned, locked, returned to treasury or otherwise removed from circulating supply according to issuer procedures.

11. Physical redemption

Physical delivery may be available upon request for eligible holders who redeem 400 XAUa or more. The issuer-approved delivery hubs are London, Zurich, Singapore and Hong Kong SAR. Physical redemption is not offered in the United States. Every request remains subject to written issuer confirmation, custodian capacity, identity verification, compliance review, fees, taxes, duties, delivery logistics and full satisfaction of these Product Terms.

Physical delivery may be fulfilled through custodian release, approved collection, insured shipment or another approved method. The issuer may reject, delay or modify a request if it cannot be completed lawfully, safely, commercially or operationally.

12. Physical redemption residuals

Physical gold bars may not exactly match the requested redemption amount. Where bar size, bar weight, custodian procedures or delivery mechanics create a residual difference, the issuer may settle the residual digitally, require the holder to adjust the redemption amount, apply a cash or stablecoin adjustment, deliver the closest available bar configuration or use another commercially reasonable method stated in the Redemption Policy.

13. Redemption eligibility

The issuer may require redemption applicants to provide identity, address, wallet ownership, source of funds, tax, sanctions, jurisdictional, delivery and custody documentation. The issuer may refuse redemption where required by law, regulation, sanctions policy, court order, regulatory direction, internal compliance policy, operational risk or incomplete documentation.

14. Fees

XAUa may be subject to issuance, redemption, custody, physical delivery, network, compliance, market disruption, FX or settlement fees. Fees are set out in the XAUa Fee Schedule and may be amended from time to time.

15. Valuation

The value of XAUa is determined according to the published valuation policy. The issuer may use recognized gold benchmarks, spot gold data, ETF NAVs, exchange prices, broker marks, custodian statements, certificate valuations, stablecoin values and other reasonable data sources.

During market disruption, the issuer may use backup pricing sources, delayed pricing, fair value estimates, valuation haircuts or adjusted settlement procedures.

16. Reserve reporting

The issuer may publish a reserve transparency dashboard showing selected metrics such as XAUa outstanding, reserve value, physical gold holdings, ETF or ETC holdings, certificate holdings, coverage ratio, latest reserve update and independent review status. Some supporting documents may be restricted and available only to approved parties.

17. Restricted records

Certain records may contain sensitive commercial, custody, operational, counterparty or security information. Restricted records may include detailed custodian statements, bar lists, insurance certificates, brokerage statements, certificate documentation, internal control procedures, compliance reports, independent review materials and legal opinions.

Exact provider identities, facility addresses, bar or serial lists, transport routes, insurance schedules, internal reconciliations, audit workpapers and counterparty records are confidential. Access may require a verified restricted-record request, legitimate purpose, registered customer status, confidentiality undertakings and issuer approval; records may be redacted, delayed or withheld where security, privacy, contractual, legal or regulatory interests require.

18. No investment advice

The issuer does not provide investment, legal, tax, accounting, financial, commodity trading or regulatory advice. Information published about XAUa is provided for product information purposes only. Holders should conduct their own assessment and seek independent advice before acquiring, holding, transferring or redeeming XAUa.

19. Risk factors

Holding XAUa involves risk, including gold price risk, reserve asset risk, ETF or ETC risk, certificate risk, custody risk, liquidity risk, redemption risk, physical delivery risk, stablecoin risk, XRPL risk, Stellar risk, cross-network reconciliation risk, regulatory risk, operational risk, sanctions risk and tax risk.

20. Market disruption events

A market disruption event may include gold market closure, benchmark unavailability, ETF or ETC trading halt, custodian restriction, brokerage disruption, banking or settlement failure, stablecoin depeg or freeze, XRPL or Stellar outage, sanctions, court order, regulatory action, force majeure, war, cyberattack, natural disaster or systemic market failure.

During a disruption, the issuer may delay issuance, suspend redemptions, change pricing sources, apply valuation adjustments, modify settlement procedures, pause transfers or take other commercially reasonable actions.

21. Suspension rights

The issuer may suspend or limit issuance, transfers, trading support, redemptions or physical delivery due to legal or regulatory requirements, sanctions obligations, market disruption, reserve shortfall, custodian or broker failure, suspicious activity, fraud, error, security incident, network disruption, operational maintenance or protection of holders and reserve integrity.

22. Undercoverage event

An undercoverage event occurs when the issuer determines that the reserve coverage ratio has fallen below 100.00%. Upon an undercoverage event, the issuer may suspend new issuance, add reserve assets, rebalance reserves, use issuer capital where appropriate, limit or delay redemptions, publish a notice if material and take commercially reasonable action to restore coverage.

23. Excess coverage

If the reserve portfolio exceeds required coverage, the issuer may retain the excess as a reserve buffer or manage it according to the Product Terms and Reserve Methodology. No holder has a claim to excess reserves unless expressly stated in these Product Terms.

24. Tax responsibility

Each holder is solely responsible for determining and satisfying any tax obligations arising from acquiring, holding, transferring, trading or redeeming XAUa. The issuer may request tax information and may withhold, report or deduct amounts where required by law.

25. Compliance and restricted jurisdictions

XAUa may not be available in all jurisdictions. Physical redemption is limited to approved arrangements in London, Zurich, Singapore and Hong Kong SAR and is not offered in the United States. The issuer may restrict access by person, jurisdiction, wallet, platform, transaction type or redemption route, and may reject or suspend any holder or transaction where it believes there may be sanctions, money laundering, terrorist financing, fraud, market abuse, regulatory, tax reporting, circumvention or operational risk.

26. Wallets and private keys

Holders are responsible for maintaining control of wallets, private keys, seed phrases and signing devices. The issuer is not responsible for losses caused by lost private keys, compromised wallets, incorrect destination addresses, phishing, malware, user error, irreversible blockchain transactions or unsupported wallets and networks.

27. Network and token standard

XAUa is issued natively on XRPL and Stellar. Both native issuances form part of the same Assetiko Gold product, reserve obligations and consolidated outstanding-supply calculation, but remain separate network assets identified by their respective issuer accounts. Transfers do not automatically move XAUa between networks. Any issuer-operated conversion, redemption and reissuance, bridge or other cross-network process is subject to availability, verification, fees, limits, compliance review and separate operating instructions. Holders must verify the network and issuer account before every transaction.

28. Amendments

The issuer may amend these Product Terms, the Reserve Methodology, the Redemption Policy, the Fee Schedule or related documents. Material amendments may be published on the XAUa product page. Emergency amendments may take effect immediately where required to protect the product, holders, reserves, legal compliance, settlement integrity or operational security.

29. Termination or product wind-down

The issuer may terminate, wind down or restructure XAUa if it determines that continued operation is not commercially, legally, operationally or technically viable. Upon wind-down, the issuer may stop new issuance, suspend secondary support, establish a final redemption window, liquidate reserve assets, pay eligible holders in supported settlement assets, apply final valuation and fees, and burn, lock or retire redeemed tokens.

30. Limitation of liability

To the maximum extent permitted by applicable law, the issuer shall not be liable for indirect, incidental, consequential, punitive, special or exemplary damages, including loss of profit, opportunity, data, market loss, trading loss, tax liability or blockchain transaction error. The issuer's liability, if any, shall be limited to the express redemption rights stated in these Product Terms, subject to eligibility, reserve availability, fees, compliance requirements and applicable law.

31. No guarantee

The issuer does not guarantee the market price of XAUa, continuous liquidity, continuous redemption availability, physical delivery in every jurisdiction, no tracking difference, no regulatory change, no custodian, broker or counterparty failure, no blockchain disruption or any investment return.

32. Governing law

These Product Terms shall be governed by the laws stated in the final published Product Terms and applicable issuer documentation. Any dispute shall be resolved according to the dispute resolution process stated in the final published Product Terms, which may include courts, arbitration or another agreed forum.

33. Product documents

These Product Terms should be read together with the XAUa Reserve Methodology, XAUa Redemption Policy, XAUa Risk Disclosure, XAUa Fee Schedule, XAUa Valuation Methodology, XAUa Transparency Reports, the Physical Delivery & Confidential Records Policy, and applicable onboarding and compliance documents.

If there is a conflict between these Product Terms and any summary page, dashboard, marketing page or non-binding product description, these Product Terms prevail.