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Risk Disclosure
What are AUXM Tokens?
AUXM tokens are a premium digital asset backed by a PECU coin based Digital Asset Treasury on a dollar for dollar value basis and anchored in the accumulation of physical gold or gold reserves. Refineries and institutions with verified vaulted gold, as well as mining companies with geologically proven reserves, can request to mint AUXM tokens to represent their legally owned unencumbered gold reserves. This framework transforms gold into a transparent, tokenized instrument, enabling liquidity, fractional ownership and collateralization within a Digital Asset Treasury (DAT). By combining PECU with tokenized gold, AUXM establishes a dual‑layer of trust and value, modernizing physical commodity finance.
Key Characteristics of AUXM Tokens
Asset Backed
Every AUXM token is secured by a PECU based Digital Asset Treasury on a dollar for dollar value basis and accumulated gold or reserves over time.
Direct Exposure
AUXM tokens are pegged to the real time global pricing of physical gold.
Transportable
Transporting physical gold is costly & challenging, AUXM is easy to transfer within seconds without the costs.
Institutional Focus
Redemption privileges are exclusive to verified institutional customers such as brokerage firms, funds & exchanges.
Strict Compliance
Mandatory KYC/AML verification for all institutional redemptions.
24/7 Trading Ability
Every AUXM token is tradable 24/7/365 on exchanges that list AUXM tokens.
Fractionalization
Physical gold is difficult to fractionalize, AUXM by design is fractionalized up to 15 decimal points.
Investor Control
Institutional AUXM token holders enjoy no custodian fees, they manage their own costs and logistics when opting for physical asset redemption.
Utility and Advantages
How AUXM Tokens Work
Asset Backed: Every AUXM token is secured by a PECU coin based Digital Asset Treasury and accumulated physical gold or reserves.
On Demand Supply: AUXM tokens have an initial supply of 100,000 tokens, once distributed verified institutions, gold refineries and mining companies with unencumbered and verified gold reserves can request to mint additional AUXM tokens specific to their organization.
Redemption Option: Redemption parameters and timelines are at the option of the issuer, ONLY verified institutional customers can redeem AUXM for physical assets, subject to monthly limits.
Redemption Limits: Capped at 100 AUXM tokens per month or 20% of a holder’s total AUXM balance, whichever is lesser.
Holder Responsibilities: Token holders converting to physical assets cover export, logistics, customs and storage costs.
Freely Tradable: AUXM tokens can be traded, transferred or collateralized within Digital Asset Treasuries for the life of the token.
AUXM tokens are designed for institutions seeking exposure to physical gold with the option for conversion in the future or digital open market liquidity for trading purposes. They also provide gold refineries and mining companies a pathway to unlock liquidity without selling their verified reserves, while enabling them to build a trusted customer base for AUXM‑to‑gold conversions of their legally owned and authenticated reserves.
Gold Markets Overview
The global gold market is a dynamic ecosystem that connects miners, refiners, dealers, financial institutions, and investors. It is anchored in the trade of physical gold, primarily through standardized formats such as Good Delivery bars, and priced in real-time via the spot gold market.
Good Delivery & Accepted Bar Sizes
Gold bars that meet London Bullion Market Association (LBMA) Good Delivery standards are considered the benchmark for international trade. These bars must:
Weigh between 350 to 430 troy ounces (~11 to 13 kg), with a standard weight of 400 oz.
Have a minimum purity of 99.5% (995 fine).
Be produced by LBMA-accredited refiners.
Feature stamped serial numbers, refiner’s mark, fineness, and year of manufacture.
Smaller accepted bars for retail and institutional trade include:
1 kg bars (often traded in Asian markets)
100g, 250g, 500g bars (retail investors)
Minted coins (sovereign, krugerrand, etc.)
Spot Gold, Storage, Refining & Transport Costs
Spot Price is determined in real-time by global trading activity, based on the most immediate delivery contracts. It is the benchmark for pricing.
Secure storage of gold bars in bonded warehouses or bank vaults incurs fees based on bar size and location. Rates vary from 0.1% to 0.5% annually of the asset’s value.
Raw gold, including dore or alluvial gold, must be refined to meet purity standards. Refining costs typically range from $1 to $5 per gram, depending on volume and purity.
Secure transport (typically armored logistics services) is expensive, often $1,000+ per shipment, with additional insurance costs based on value and destination.
Risks of Discounted Alluvial Gold from Africa
While Africa is a rich source of gold, engaging in the discounted alluvial gold trade comes with significant risks:
High rates of fraudulent transactions, fake documents, and fake gold.
Export restrictions, lack of legal infrastructure, and opaque supply chains.
Theft, political instability, and logistical challenges increase exposure to loss.
Alluvial gold often requires expensive and uncertain refining processes to meet market standards.
