> ## Documentation Index > Fetch the complete documentation index at: https://docs.cargotrading.xyz/llms.txt > Use this file to discover all available pages before exploring further. # Real-World Assets Behind Cargo Vaults > Which real-world assets Cargo vaults can hold, how they are held and verified, the legal structure, the eight tests every asset must pass, and the Genesis Vault's West African Grade 1 cocoa. Cargo vaults hold **real-world assets** as receipted, pledged inventory: goods with a standard grade, a deep reference price and a short path to a buyer. Soft commodities such as cocoa, coffee and sugar, metals such as gold, and anything else that passes the [eight tests](#eight-tests-for-any-commodity). Each asset is its own vault, with its own lots, NAV and vault shares. ## What Makes a Good Collateral Asset > [card] Standard Grade > > A graded bean, a sugar spec or a good-delivery gold bar means the same thing everywhere. > [card] Deep Reference Price > > An exchange or benchmark (ICE, LME, LBMA) gives a daily mark and a hedge. > [card] Self-Liquidating > > Goods are bought to be sold. Collateral turns into cash within weeks. Physical assets are hard for four reasons: volatility, basis between physical and futures prices, quality decay and legal reach. Cargo's structure answers each one, and the eight tests decide whether an asset qualifies at all. ## Custody and Verification The same controls apply in every vault: * **Collateral Manager:** independent, with sole release authority. Goods leave only against payment. * **Verification:** an independent inspector weighs and grades every lot. A discrepancy above 0.5% suspends the lot until it is made good, and triggers a recount. * **Reporting:** weekly stock reports hashed on-chain; lot IDs, weights and grades public. * **Insurance:** all-risks stock cover on every lot. ## Legal Structure | Layer | Instrument | | :- | :- | | Title | A bankruptcy-remote, limited-recourse Vault SPV owns each lot from the moment it is receipted | | Security | A registered pledge over the goods, with the collateral manager as third-party holder | | Enforcement | One security agent for all holders | | Sale and cash | Goods are sold through licensed exporters or dealers | | Originator retention | 10% of each lot as subordinated shares (first loss) | | Offering | Private, to eligible non-US professional or institutional investors (Regulation S). Residents of any jurisdiction the vault's term sheet excludes cannot invest | ## Eight Tests for Any Commodity An asset becomes a Cargo vault only if it passes all eight: | # | Test | Means | | :- | :- | :- | | 1 | Standard grade | An exchange or trade-association specification | | 2 | Deep reference price | A liquid future or a published index | | 3 | Storability | Shelf life well beyond the holding period | | 4 | Independent custody | A collateral manager with sole release authority | | 5 | Perfectable security | A registrable pledge or title where the goods are stored | | 6 | Liquid physical exit | At least three approved buyers able to take a lot within 10 days | | 7 | Insurable | All-risk stock and transit cover at commercial rates | | 8 | Traceable | Lot-level origin documents, including EUDR data where required | ## Which Assets Fit | Class | Examples | Reference | Fit | | :- | :- | :- | :- | | ICE London softs | Cocoa, robusta coffee, white sugar | ICE Futures Europe | Strong: the Genesis Vault is cocoa | | ICE US softs | Arabica coffee, raw sugar, cotton | ICE Futures US | Strong | | Precious metals | Gold, silver | LBMA | Strong: low volatility, vaulted | | Base metals | Copper, aluminium | LME | Strong: warrant system, low decay | | Grains and oilseeds | Wheat, corn, soybeans | CBOT, Euronext | Good: thin margins, large lots | | Energy | Crude, refined products | Brent, WTI | Harder: storage and licensing | | Crops without futures | Cashew, shea, timber | None or thin | Weak | Vaults are added one at a time. Coffee and sugar share the Genesis Vault's rails, so they are the nearest candidates. See [Vaults](https://docs.cargotrading.xyz/products/vaults.md#vault-lines). ## The Genesis Vault The first Cargo vault holds **West African Grade 1 cocoa** and issues **cvCOCOA**: one share is one kilogram, priced off **ICE London Cocoa**. > [card] West African Grade 1 > > Fermented, dried and bagged beans of the top export grade. > [card] ICE London Cocoa > > The price reference and the hedge: 10,000 shares move like one 10 t lot. > [card] \$5.277 NAV > > Per share at 9 Oct 2026, a 10.1% spread over receipted cost. | | | | :- | :- | | Asset | West African Grade 1 cocoa beans | | Quality records | Moisture, cut test and bean count on every receipt | | Lot size | 25 t minimum, each with a lot ID, weight, grade and receipt | | Custody | Approved bonded warehouse under an independent collateral manager | | Verification | Vallis inspects, weighs and grades every lot | | Price reference | ICE London Cocoa | | Time in the vault | Sold within 90 days of receipt, or replaced at NAV | | Traceability | Cooperative and plot data for every lot; EUDR data for EU-bound lots from 30 Dec 2026 | > [!NOTE] > > The issuer's regulator has been asked to confirm how it classifies cvCOCOA. The venue will move to the matching licence, or to a licensed partner, if required. Residents of the CEMAC region are excluded from the Genesis Vault. > [!WARNING] > > Physical backing does not remove credit, legal, liquidity or counterparty risk. Read the [Risk Checklist](https://docs.cargotrading.xyz/safety/risk-checklist.md) before you bid. This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.