What Is Covered
The insurer and policy terms for each vault are shared with investors on signing and in the data room.
What Is Not Covered
- Smart-contract exploits, key loss or chain failures.
- Falls in the price of the underlying asset.
- Losses from legal or regulatory change.
Loss Absorption, in Order
1
Originator Top-Up
A weight or grade shortfall is topped up by the originator within five business days.
2
Subordinated Shares
If not, it is met from the originator’s 10% subordinated shares (first loss).
3
Insurance
Physical loss or damage is claimed under the all-risks policy.
4
Enforcement
The security agent enforces the pledge, and the SPV sells the goods.
How to Verify Cover
- Ask for the policy summary and certificate in the data room.
- Check the lot’s receipt in the lot registry: every receipted lot must be insured.
- Policies are time-bound; check the cover period is current.