Each KAU is a digital representation of 1g gold in Kinesis vaults.
Each KAG is a digital representation of 1oz silver in Kinesis vaults.
See this Kinesis video for an explanation:
The video includes the line
When you purchase KAU or KAG, you're buying real gold or silver that is legally titled to you.
However, most KAU and KAG is held on an allocated but pooled basis. This means that it doesn't represent a specific bar or coin.
So, how can I be sure that I actually own the weight of gold or silver indicated by my KAU or KAG?
The quantity of KAU and KAG will be relatively stable within the Kinesis Monetary System.
KAU and KAG are only added to the system when a user or market maker mints new coins and the Kinesis currencies are only removed from the system when a user or market maker takes physical delivery (redeems).
If everything is working, then it isn't possible for the number of KAU or KAG on the blockchain to exceed the weight of gold or silver in the Kinesis vaults.
The third party, biannual, inspection audits provide reassurance that this is the case. Every successful audit proves that the number of grams on the blockchain is matched by a physical gram in Kinesis' network of vaults. The fact that these numbers are in agreement means that an independent third party has physically verified that your metal exists in the vaults.
You don't own particular pieces of metal, but if (for instance) you own one ten-thousandth of Kinesis' vault holdings, the audits should assure that your metal is sitting exactly where it's supposed to be.
kinesis.money
Are there any documents that back up my ownership rights by being a holder of KAU or KAG?
See the Terms of Use document (which you will have agreed to when you signed up for an account).
kinesis.money
The sections
4. BACKING OF KINESIS CURRENCY
and
5. OWNERSHIP OF BULLION
are particularly relevant here, however this document contains other other useful information that Kinesis participants should at least browse.
Where is the KAU and KAG actually stored?
See the list of vaults and vault operators on this page:
kinesis.money
What if I want my KAU/KAG to represent specific bars or coins in the vault?
If you want to have specific bars or even coins in your name that you can use as KAU/KAG, then there are additional costs, but that option is available - it's called segregated EPD.
kinesis.money
What would happen if Kinesis went bankrupt?
In this (IMO) highly unlikely event, here's my understanding of what would happen in the case of bankruptcy:
Each KAG is a digital representation of 1oz silver in Kinesis vaults.
See this Kinesis video for an explanation:
The video includes the line
When you purchase KAU or KAG, you're buying real gold or silver that is legally titled to you.
However, most KAU and KAG is held on an allocated but pooled basis. This means that it doesn't represent a specific bar or coin.
So, how can I be sure that I actually own the weight of gold or silver indicated by my KAU or KAG?
The quantity of KAU and KAG will be relatively stable within the Kinesis Monetary System.
KAU and KAG are only added to the system when a user or market maker mints new coins and the Kinesis currencies are only removed from the system when a user or market maker takes physical delivery (redeems).
If everything is working, then it isn't possible for the number of KAU or KAG on the blockchain to exceed the weight of gold or silver in the Kinesis vaults.
The third party, biannual, inspection audits provide reassurance that this is the case. Every successful audit proves that the number of grams on the blockchain is matched by a physical gram in Kinesis' network of vaults. The fact that these numbers are in agreement means that an independent third party has physically verified that your metal exists in the vaults.
You don't own particular pieces of metal, but if (for instance) you own one ten-thousandth of Kinesis' vault holdings, the audits should assure that your metal is sitting exactly where it's supposed to be.
Secure and fully audited vault storage
Quarterly independent third-party audits ensure that all Kinesis currencies are based on a 1:1 allocation of underlying bullion.
kinesis.money
Are there any documents that back up my ownership rights by being a holder of KAU or KAG?
See the Terms of Use document (which you will have agreed to when you signed up for an account).
Terms and conditions
Review the Kinesis Terms and Conditions to understand our user agreement, policies, and guidelines for using our digital asset platform.
kinesis.money
The sections
4. BACKING OF KINESIS CURRENCY
and
5. OWNERSHIP OF BULLION
are particularly relevant here, however this document contains other other useful information that Kinesis participants should at least browse.
Where is the KAU and KAG actually stored?
See the list of vaults and vault operators on this page:
Trust and security - Kinesis Money
We’ve taken every step possible to ensure your gold and silver holdings are in safe hands.
kinesis.money
What if I want my KAU/KAG to represent specific bars or coins in the vault?
If you want to have specific bars or even coins in your name that you can use as KAU/KAG, then there are additional costs, but that option is available - it's called segregated EPD.
Exchange Physical for Digital (EPD) | Kinesis Money
Find out how to exchange physical metals for Kinesis currencies where you can earn a yield on your earnings plus zero storage fees.
kinesis.money
What would happen if Kinesis went bankrupt?
In this (IMO) highly unlikely event, here's my understanding of what would happen in the case of bankruptcy:
- An administrator would be appointed to distribute the metal that each account holder owned.
- The administrator would use the central database to determine entitlements.
- That database is backed up on multiple servers in multiple regions.
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