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Risk Disclosure
What are AGXM Tokens?
AGXM tokens represent the primary physical silver pricing exposure asset class within the XMG Token Series, collateralized on a dollar‑for‑dollar basis by a PECU‑based Digital Asset Treasury.
Each XMG token series, including AGXM, has a main token class, and verified institutions have the option to mint their own issuer‑identified AGXM variants, enabling them to operate within their own ecosystem while maintaining full control over cash‑in/cash‑out flows, utility functions, physical reserves and partnership integrations.
These issuer‑specific AGXM tokens remain fully interoperable with the main AGXM class across both the native PNP16 protocol and ERC‑20 environments.
Refineries and institutions with verified vaulted physical silver, as well as mining companies with geologically proven and legally owned unencumbered physical silver reserves, may request authorization to mint AGXM tokens that represent their underlying physical assets.
This framework transforms physical silver into a transparent, tokenized financial instrument, enabling liquidity, fractional ownership, and collateralization within a Digital Asset Treasury (DAT).
By combining PECU collateral with tokenized real‑world physical silver reserves, AGXM establishes a dual‑layer trust model that modernizes physical commodity finance and expands institutional access to on‑chain asset‑backed instruments.
Key Characteristics of AGXM Tokens
Asset Backed
Every AGXM exposure token is secured by a PECU‑based Digital Asset Treasury on a dollar‑for‑dollar value basis.
Direct Exposure
AGXM exposure tokens are pegged to real‑time global pricing for physical silver.
Transportable
Transporting physical silver is costly and operationally complex, AGXM provides instant, low‑cost pricing exposure without the burdens of physical movement.
Institutional Focus
Physical redemption privileges are determined solely by each issuer and are limited to verified institutional customers such as brokerage firms, funds, and exchanges.
Strict Compliance
All issuer‑approved institutional redemptions require mandatory KYC/AML verification.
24/7 Trading Ability
AGXM exposure tokens are tradable 24/7/365 on any exchange or platform that lists them.
Fractionalization
AGXM is inherently fractionalized up to 15 decimal places, overcoming the indivisibility of physical silver.
Investor Control
Institutional AGXM exposure token holders may self‑custody or act as custodians for others, managing their own logistics and costs if an issuer grants physical redemption.
Utility and Advantages
How AGXM Tokens Work
Asset Backed: Every AGXM token is secured by a PECU coin based Digital Asset Treasury and accumulated physical gold or reserves over time.
On Demand Supply: AGXM tokens have an initial supply of 100,000 tokens, once distributed verified institutions, silver refineries and mining companies with unencumbered and verified silver reserves can request to mint additional AGXM tokens.
Redemption Option: Redemption parameters and timelines are at the option of the issuer, ONLY verified institutional customers can redeem AGXM for physical assets, subject to monthly limits.
Redemption Limits: Capped at 10,000 AGXM tokens per month or 20% of a holder’s total AGXM balance, whichever is lesser.
Holder Responsibilities: Token holders converting to physical assets cover export, logistics, customs, and storage costs.
Freely Tradable: AGXM tokens can be traded, transferred or collateralized within Digital Asset Treasuries for the life of the token.
AGXM tokens are designed for institutions seeking exposure to physical silver with the option for conversion in the future or digital open market liquidity for trading purposes. They also provide silver refineries and mining companies a pathway to unlock liquidity without selling their verified reserves, while enabling them to build a trusted customer base for AGXM‑to‑silver conversions of their legally owned and authenticated reserves.
Silver Markets Overview
The global silver market is a robust component of the precious metals sector, involving mining, refining, industrial use, investment demand, and physical trade. Silver, like gold, trades on spot markets and through institutional contracts but also has significant use in technology, medical, and energy sectors.
Good Delivery & Accepted Bar Sizes
Silver bars that meet London Bullion Market Association (LBMA) Good Delivery standards are globally accepted for settlement and investment. Key criteria include:
Weight: Typically 1,000 troy ounces (~31.1 kg), though some variation is allowed.
Purity: Minimum 99.9% (999 fine).
Stamps: Bars must be marked with the refiner’s hallmark, purity, weight, and serial number.
Bars are produced by LBMA-accredited refiners to ensure global tradability.
Retail bar sizes include:
5 oz, 10 oz, 100 oz, and 1 kg bars.
Silver coins for retail and collector markets.
Spot Silver, Storage, Refining & Transport Costs
Spot Price reflects real-time market valuation for immediate delivery, influenced by industrial demand and investor sentiment.
Silver requires more volume per dollar than gold, so storage costs are higher. Secured vaulting typically ranges from 0.3% to 0.7% annually.
Silver refining is generally less costly than gold, but varies by purity. Costs range from $0.50 to $1.50 per troy ounce depending on contamination and form.
Larger volume makes silver more expensive to transport relative to value. Secure logistics can cost $500–$2,000+ per shipment, depending on distance and insurance.
Risks of Discounted Silver from Mexico and Peru
Mexico and Peru are leading silver producers, but buying discounted silver, especially in dore or raw forms, carries significant risks:
Informal markets can present counterfeit or impure metal.
Illegitimate export documents, unclear origin trails.
Mining rights, permits, and export policies can be complex.
Processing silver ore or dore bars into LBMA-grade silver can be uncertain and expensive.
