XAG1 Product Terms

1. Product Definition

XAG1 is a digital token representing one (1) troy ounce of physical silver per token. Each XAG1 token corresponds to an equivalent quantity of allocated physical silver held in custody under the terms described herein.

2. Custody & Storage

Physical silver backing XAG1 is held on an allocated basis, meaning the silver is specifically identified and segregated for the benefit of token holders.

Silver is stored in secure professional vault facilities located in:

All silver bars conform to LBMA Good Delivery standards or equivalent internationally recognized bullion specifications.

3. Minting

XAG1 tokens are minted only after the corresponding amount of physical silver has been:

1. Acquired at prevailing spot market prices, and
2. Allocated into custody at an approved vault location.

Tokens are issued strictly on a 1 token = 1 troy ounce of silver basis.

4. Redemption Overview

Token holders may request redemption of XAG1 through one of the following methods, subject to applicable conditions, fees, and verification requirements.

Redemption always requires the burning (destruction) of the redeemed XAG1 tokens prior to settlement.

5. Cash-Settled Redemption

Cash-settled redemption is available for any amount of XAG1.

Upon redemption:

• The redeemed tokens are burned, and
• The token holder receives a cash settlement equivalent to the redeemed silver quantity, calculated using a recognized XAG/USD spot reference price at the time of processing.

Settlement may be made via bank transfer or approved digital settlement methods. Cash-settled redemptions are typically processed on a T+0 to T+1 basis.

6. Physical Silver Redemption

Physical redemption is available for redemption requests of 1,000 troy ounces or more.

Token holders requesting physical delivery must:

1. Submit a physical redemption request,
2. Burn the corresponding number of XAG1 tokens, and
3. Select a supported vault location for delivery or transfer.

Physical delivery options include vault-to-vault transfer or insured physical shipment. Processing times typically range from 3 to 10 business days.

7. Pricing Reference

XAG1 does not represent a guaranteed market price. Spot silver prices (XAG/USD) are used solely as reference inputs for minting and redemption calculations. Secondary market trading prices, if any, are determined independently by market participants.

8. Fees & Limits

Minting and redemption may be subject to:

• Transaction fees
• Processing fees
• Logistics and insurance costs (for physical redemption)

Minimum thresholds apply only to physical silver redemption as specified above.

9. Risk Considerations

• Token holders are exposed to fluctuations in the market price of silver.
• Redemption may be delayed or restricted due to extraordinary market conditions, regulatory requirements, or operational constraints.
• Physical redemption is subject to jurisdictional and logistical limitations.