XAUk Terms of Service
Last updated: November 7, 2025
These Terms of Service (hereinafter, “TOS”) govern the provision and use of the gold-denominated and backed token managed by XAUk Commodities Ltd. (herein “we,” “us,” or “our”). These terms apply to each electronic form of contract executed by any User or Customer who accesses or uses our products or services, including any website managed by us (together, the “Platform”). As used in this TOS, a “Customer” refers to our registered customer who may obtain access to use additional non-public elements of our Platform, and a “User” refers to any non-registered user that accesses any public portion of our Platform or XAUk.
To the extent there is a conflict between the TOS and the terms of any other agreement you (as User or Customer, as applicable) may have with us, including, for example, the general terms and conditions, the terms of this TOS will govern and control with respect to your use of XAUk.
For the avoidance of doubt, these TOS constitute an addendum or supplement to your applicable contractual documentation and form part of your agreements with us.
1. ELIGIBILITY
1.1. To access or use the Platform or XAUk, you must be at least 18 years old (or the age of majority in your jurisdiction), not a resident of a prohibited jurisdiction (as determined by us in compliance with applicable laws, including sanctions lists), and not otherwise barred from using our services under applicable law.
1.2. We may require proof of identity, residency, and compliance with anti-money laundering (AML), know-your-customer (KYC), and counter-terrorist financing (CTF) requirements before granting access or processing transactions.
1.3. By using the Platform or XAUk, you represent that you meet these eligibility criteria and agree to provide accurate information.
2. DEFINITIONS
2.1. “Allocated Gold” means a specific gold bar held in an LBMA-approved security carrier vault, identifiable by a unique serial number, weight, and purity percentage.
2.2. “LBMA” means the London Bullion Market Association.
2.3. “Loco London” means gold bullion that is physically held in London as defined by the LBMA.
2.4. “London Good Delivery” has the meaning ascribed to it by the LBMA, as may be updated from time to time.
2.5. “Unallocated Gold” means gold deposits held by an LBMA-approved institution, which is a liability of such institution whereby the holder of unallocated gold owns a claim to an equivalent balance of gold.
3. RISK FACTORS
3.1. The cryptocurrency blockchains may experience backlogs, higher than normal transaction fees, changes to the network, failure, or a fork in the protocol. We do not own or control the blockchains and are not responsible for the operation of the networks and make no guarantees regarding the network’s security, functionality, or availability.
3.2. The value of XAUk tokens relies substantially on the value of London Good Delivery gold. The price of London Good Delivery gold fluctuates against fiat currencies and may result in losses in value.
3.3. XAUk tokens may be sold at a discount to certain Customers for market-making purposes. Certain market makers and other market participants may receive incentives to purchase XAUk tokens.
3.4. Additional risks include, but are not limited to: regulatory changes that could affect the legality or value of XAUk; custody risks related to vaults or third-party providers; cybersecurity threats to the Platform or blockchains; market volatility in gold or crypto; and potential illiquidity during high volatility periods. We conduct regular audits of gold holdings and publish reports on our website, but no assurance is given against all risks.
4. OUR PLATFORM
Our Platform is an online platform that allows Customers to convert Unallocated Gold for XAUk and convert XAUk for Unallocated Gold or Allocated Gold.
5. XAUk
5.1. XAUk tokens are not money or legal tender and are not monetary instruments. Once you have XAUk tokens, you can transfer them, trade them, keep them, use them to pay persons that will accept XAUk, or convert them for other crypto or fiat currencies, Unallocated Gold, or Allocated Gold with us, subject to the limitations below.
5.2. Each XAUk token is equal to one kilogram of London Good Delivery gold.
5.3. XAUk tokens represent fractional ownership of London Good Delivery gold bars, which are held by us on a segregated basis for the benefit of XAUk holders within LBMA-approved security carrier vaults.
5.4. Any currency used to purchase XAUk is promptly converted into an equivalent amount of London Good Delivery gold to maintain a one-to-one ratio of XAUk to the amount of London Good Delivery Allocated Gold bars. For example, if you purchase five XAUk, we will hold in custody an additional five kilograms of London Good Delivery Allocated Gold for your benefit.
5.5. We issue XAUk pursuant to specific approvals of applicable regulators.
5.6. XAUk is available on the Platform for trading, custody, and withdrawal. XAUk was approved for Customers through specific regulatory approvals. Restrictions may apply in accordance with applicable law.
5.7. XAUk is a multichain token on various public blockchains. Because of this, XAUk may be compatible with existing third-party software that supports multichain tokens.
5.8. In order to facilitate processing and to hedge against price risk, you may be purchasing XAUk tokens that are owned by us. XAUk tokens owned by us, like all XAUk tokens, represent ownership of Allocated Gold and will be sold at market rate. Upon your purchase of XAUk tokens, whether those tokens were previously owned by us or otherwise, you will become the beneficial owner of those tokens and the underlying Allocated Gold.
5.9. We may, at our sole discretion, engage market makers to provide liquidity for XAUk markets, both on the Platform and on third-party platforms.
5.10. Only verified Customers may purchase XAUk from us or convert or redeem XAUk from us. We may also refuse to issue XAUk to, or convert or redeem XAUk from, a verified Customer in the event of the suspension and/or termination of your account with us (an “Account”) or any circumstances in violation of our contractual documentation, including, without limitation, where we believe that the issuance or redemption of XAUk would be contrary to applicable law or would otherwise expose us to legal liability. Absent a reasonable justification not to convert or redeem XAUk, and provided that you are a fully verified Customer, your XAUk are freely convertible, subject to the conversion requirements described herein.
6. OWNERSHIP AND ALLOCATION
6.1. Your XAUk tokens are equivalent to a warehouse receipt representing your beneficial ownership of a pro rata portion of Allocated Gold. This means that you, the token holder, hold all of the economic value of the gold represented by your tokens, and all of the risk and reward related to ownership of that gold.
6.2. You will be able to view the serial number, purity, and gross weight of the London Good Delivery gold bars represented by the XAUk tokens held in your public address on our public website. We may reallocate your XAUk tokens to different bars from time to time, in order to take into account transfers of XAUk tokens, new conversions of XAUk tokens, redemptions, and other XAUk transactional activity. This reallocation process will be automated and instantaneous, such that all XAUk tokens will be allocated to specific gold bars at all times. We conduct independent audits of these allocations at least monthly and publish reports on our website.
6.3. We will make commercially reasonable efforts to allocate your XAUk tokens to the fewest number of gold bars possible, and there may be a reallocation to consolidate your (and others’) XAUk tokens to the fewest number of bars on a frequent basis. In the event you are not allocated ownership of a full gold bar, you will own a pro rata share of that bar as determined by your XAUk token holdings.
7. FUNDING YOUR ACCOUNT WITH FIAT CURRENCY
7.1. After creating your Account with us, you will be able to fund your Account with fiat currency. You may fund your Account with US dollars transferred from your account(s) with financial institutions. Once we receive your funds and validate that they are from a bank account owned by you, we will credit your Account with those funds. If a US dollar deposit does not originate from a bank account owned by you, it will be rejected and returned immediately. US dollar deposits sent before 12:00 p.m. UKT will typically be credited to your Account on the same day or next business day. US dollar deposits may not be credited outside of normal banking hours. Transfer times are subject to bank holidays, the internal processes and jurisdiction of your bank, and the internal processes of our banks.
7.2. You represent and warrant that all funds that you transfer to us do not represent the proceeds of any criminal, sanctioned, unlawful, or fraudulent activity. You are not allowed to receive funds in your Account from a sender other than yourself, unless you receive specific prior approval otherwise from us. If we reasonably determine that you are not the owner of the funds in your Account, we reserve the right to dispose of those funds in accordance with applicable law and in our sole discretion, which may include returning the funds to the originator or to a charity of our choosing.
8. FUNDING YOUR ACCOUNT WITH XAUk
8.1. To fund the Account with XAUk, you may transfer XAUk from your account(s) with a third-party crypto asset provider(s) into your Account operated by us to your XAUk deposit address.
8.2. You represent and warrant that all XAUk that you transfer to us do not represent the proceeds of any criminal, sanctioned, unlawful, or fraudulent activity. You are not allowed to receive XAUk in your Account from a sender other than yourself, unless you receive specific prior approval otherwise from us. If we reasonably determine that you are not the owner of the XAUk in your Account, we reserve the right to dispose of those XAUk in accordance with applicable law and in our sole discretion, which may include returning the XAUk to the originator or to a charity of our choosing.
9. PURCHASING XAUk
9.1. After your Account has been funded, you may begin the process to convert fiat currency into XAUk, as follows:
You will be shown a streaming price quote for the price of one kg London Good Delivery gold (the “Streaming Price Quote”). The Streaming Price Quote is only valid for ten (10) seconds. Prior to your decision to convert, you will be shown an estimate of the conversion price for XAUk tokens.
Prior to the placement of a purchase order on the Platform, you will be required to review the following information: the amount of the purchase, the commission (if any) to be charged by the Platform, and the blockchain address to which the XAUk will be sent. You will also be shown an updated Streaming Price Quote.
You will have ten (10) seconds to review and submit your purchase order. If your Streaming Price Quote expires, you must obtain a new price quote.
During periods of extreme volatility and at our sole discretion, the Streaming Price Quote may update faster than every ten (10) seconds.
Once an issuance of XAUk has been executed and the appropriate assets have been credited and debited, the transaction may not be reversed.
We require a minimum amount of one (1) kg gold or equivalent in fiat currency for conversion, which may be updated from time to time.
Once a purchase request has passed our compliance checks, it will be processed. Provided a purchase request was made by 5:00 p.m. UKT and has passed the necessary compliance checks, your XAUk tokens will be delivered the next business day following a purchase request.
All conversions will be rounded down to the nearest 1/100th of a kilogram.
10. CONVERTING UNALLOCATED GOLD INTO XAUk
10.1. You may not hold Unallocated Gold balances indefinitely on the Platform. All Unallocated Gold deposits will be treated by us as pending XAUk deposits. You may transfer Unallocated Gold to our custody using your Loco London Unallocated Gold account by instructing the institution managing your account to send Unallocated Gold to our clearing bank. Once Unallocated Gold is received by our clearing bank, you will receive a credit on the Platform that may be converted to XAUk tokens. Once your conversion of Unallocated Gold into XAUk clears, your account will be fully credited with the appropriate number of XAUk tokens. Unallocated Gold balance in your account at the daily cut-off time of 4:30 p.m. UKT will be converted to XAUk.
10.2. Unallocated Gold balances held on the Platform are issued by a third-party bank (a “Clearing Bank”). Your balance on the Platform entitles you to convert your Unallocated Gold balances to XAUk, or transfer this balance in unallocated form to another account, subject to the Clearing Bank’s solvency and ability to perform a transfer. Unallocated Gold balances may be subject to risk associated with the Clearing Bank that issues those balances. We are not responsible for any losses associated with any default by a Clearing Bank, or any unavailability of your unallocated balance, either temporarily or permanently, due to non-performance of the Clearing Bank for any reason, including but not limited to, insolvency, default, or operational error. Please refer to the Clearing Bank’s terms and conditions and other disclosures to ensure that holding Unallocated Gold balances is appropriate for you.
11. CANCELED ORDERS
We reserve the right to cancel or nullify orders in the event that the order contains a bug, mistake, or an actual or suspected breach of these TOS.
12. CONVERSION AND REDEMPTION OF XAUk
12.1. In order to convert or redeem XAUk through the Platform, you must have an Account. Your Account will have a unique deposit address to which you can send your XAUk in accordance with Section 8 of this TOS. Upon sending your XAUk to your deposit address, we will credit your Account a corresponding amount of XAUk.
12.2. After your Account has been funded with XAUk, you may begin the process to convert XAUk into fiat currencies, as follows:
You will be shown a Streaming Price Quote. The Streaming Price Quote will be updated every ten (10) seconds.
Prior to the placement of a conversion order on the Platform, you will be required to review the amount of the conversion and the commission (if any) to be charged by the Platform. You will also be shown an updated Streaming Price Quote.
You will have ten (10) seconds to review and submit your conversion order. If your Streaming Price Quote expires, you must obtain a new price quote.
During periods of extreme volatility and at our sole discretion, the Streaming Price Quote may update more frequently than every ten (10) seconds.
Once a conversion of XAUk has been executed and the appropriate assets have been credited and debited, the transaction may not be reversible.
We may require a minimum amount for conversion, which may be updated from time to time.
All conversions will be rounded down to the nearest 1/100th of a kilogram.
12.3. After your Account has been funded with XAUk, you will be given the option to convert the XAUk tokens into Unallocated Gold, as follows:
You must enter the quantity of XAUk tokens you wish to convert, along with your Loco London Unallocated Gold account details (if your account is not held directly with a Loco London clearing member, you will also include the details of your intermediary bank).
Once the request has been submitted and processed, we will send via wire withdrawal the corresponding Unallocated Gold ounces to your disclosed account.
12.4. After your Account has been funded with XAUk, you will be given the option to redeem the XAUk tokens into Allocated Gold, as follows:
You must redeem a minimum of 1 XAUk token plus the set fees, per London Good Delivery gold bar.
You may be subject to additional due diligence if you choose to redeem your XAUk tokens into Allocated Gold.
You will receive further instructions via the email you provided with your Account as to how to receive delivery of your London Good Delivery gold bar(s). You are responsible for delivery and once your bars are in the possession of the delivery service you choose, then we will have been deemed to have fulfilled our obligation for delivery.
Once the specific London Good Delivery gold bars are determined, the XAUk tokens in excess of the actual weight of the delivered bars will be credited to your account, net any applicable fees.
12.5. We will make commercially reasonable efforts to convert and/or redeem your XAUk quickly. It may take up to several business days for your Account balance to reflect the conversion or redemption, depending on your method of conversion or redemption.
13. WITHDRAWING FIAT CURRENCY
13.1. Customers may withdraw some or all of their fiat currencies from their Accounts at any time, upon request to us. Funds will be transferred from the Customer’s Account with the Platform to the bank account designated by, and owned by, the Customer.
13.2. We may impose withdrawal limits on your Account.
13.3. Please note that any withdrawals of fiat currencies may be delayed as necessary to comply with applicable laws and/or our compliance programs and policies, including verification of customer identification and anti-money laundering procedures. Withdrawals may take up to two (2) days to complete, provided that larger withdrawals may take substantially longer to complete.
14. FORKS
14.1. You understand, acknowledge, and agree that the underlying operating rules of the blockchains may change from time to time in such a way as to result in more than one related version of that blockchain (each instance of any such change, a “Fork”). If a Fork occurs, it will result in the creation of a new branch of the blockchain. We will evaluate all forks and make a determination, based on a number of factors, to support XAUk on one, and only one, of the Forks. We will continue to provide services for, support, and hold designated currency against, XAUk held on the supported Fork only.
14.2. If a Fork occurs, you understand, acknowledge, and agree that we may temporarily suspend the operations of the Platform.
15. FREEZES, UPGRADES, AND ILLEGAL USE
15.1. As part of the blockchain smart contract and as part of the services, we have the ability and the right to freeze and upgrade all XAUk tokens (on an aggregate basis), regardless of where the XAUk is being held. We will make commercially reasonable efforts to provide prior notice of any material freeze or upgrade and inform holders of XAUk of the reasons and consequences of such freeze and/or upgrade. We will make commercially reasonable efforts to use the freeze and/or upgrade feature only under limited circumstances.
15.2. We must comply with any legal directive to freeze, temporarily or permanently, user access to their XAUk or the Allocated Gold backing your XAUk with or without advance notice. We will only freeze such assets (1) if required to do so by law, specifically when we receive a formal legal directive from a regulator, judicial body, law enforcement agency, or other legal entity having jurisdiction over us; (2) pursuant to a formal notification by our partner according to previously agreed contractual terms; or (3) as deemed necessary by us, in our sole discretion. Legal directive formats include court-ordered subpoenas, national security letters, and formal written directives from regulatory oversight.
15.3. Your XAUk and the Allocated Gold backing your XAUk may be subject to seizure or forfeiture by formal written legal directive from a regulator, judicial body, law enforcement agency, or other legal entity having jurisdiction over you, and we will comply with the legal process in respect thereof. Seizure may not occur under any circumstances absent such a binding legal directive. If tokens are seized, our transaction generation will ensure that the seized funds are sent to a segregated wallet address held by us for the purposes of seizure/forfeiture, until such time as they may be disposed of or otherwise handled as required by law.
15.4. If we determine after investigation that any of your XAUk have been used, or are being used, for illegal (or sanctioned) activity, we may not permit you to redeem your XAUk with us, and, if presented for redemption, such XAUk and the Allocated Gold backing such XAUk may be forfeited. Any XAUk or fiat currency underlying XAUk that is subject to freeze, seizure, forfeiture, or similar limitation on its use imposed by law may become wholly and permanently unrecoverable and unusable, and in appropriate circumstances, may be destroyed.
15.5. This Section 15 applies to all holders of XAUk, regardless of whether the holder is a Customer or User.
15.6. By using XAUk, you agree that we may take the actions set forth above and that we will not be liable to you as a result.
15.7. If you are aware of improper conduct involving our supported asset-backed token, you should immediately contact us at i@xauk.cash, as well as law enforcement, to work towards filing a law enforcement report. We will make reasonable efforts to cooperate with law enforcement inquiries and assist with investigations pertaining to our supported asset-backed tokens, including XAUk.
15.8. Law enforcement may submit information requests to i@xauk.cash.
16. FEES
16.1. Fees will be charged upon the conversion of XAUk tokens. An overview of our fees on conversion and redemption is set forth on our site at https://xauk.cash or otherwise in a Pricing Supplement provided to you at the time of issuing XAUk, which is incorporated herein by reference (the “Pricing Supplement”).
16.2. We may charge storage fees to all token holders by issuing new XAUk tokens to ourselves, thereby diluting the value of existing XAUk tokens on a pro rata basis. The storage fee will be in line with industry practice, and such storage fee will be passed on to all XAUk token holders on a pro rata basis. The full methodology and exact timing of the storage fee will be disseminated at least thirty (30) days prior to the implementation of such storage fees. The storage fees are an obligation of all XAUk token holders, regardless of whether such token holder is a Customer. By purchasing XAUk tokens, you agree to assign the obligation to pay any and all storage fees tied to the XAUk tokens to subsequent holders of such XAUk tokens, and by receiving transfers of XAUk tokens, token holders agree to accept the assignment of such obligation.
16.3. Your financial institution and/or the provider of your crypto-asset wallet may charge transaction and other fees related to the transfer of funds to your Account. To the extent we are charged any banking fees by your financial institution or our financial institution for the deposit or withdrawal of fiat currencies to or from your Account, we will deduct an amount equal to any such fees from the amount being transferred.
16.4. We may offer incentives or reduced fees to certain Customers at our sole discretion.
16.5. Due to the cost of maintaining and supporting your Account and subject to applicable law, you will incur a monthly charge of two US dollars (US $2.00) (or equivalent amount in XAUk, if applicable) if you maintain a non-zero balance and there has been no issuance or redemption activity on the Account for twelve months or longer. Such fee will be auto-debited from your account on a periodic basis until such time as the Account is closed. No negative fees shall be incurred.
16.6. We reserve the right to change or modify our fee structure or increase any of our fees at any time and from time to time. Any such changes, modifications, or increases will be effective upon posting such changes, modifications, or increases on the Platform. Your first use of your Account following the posting of any changes to the fees will constitute your acceptance of such changes. If you do not agree to the posted changes, you may close your Account as provided in our contractual documentation.
17. REPRESENTATIONS AND WARRANTIES
17.1. You represent and warrant that: (a) you have the legal capacity to enter into these TOS; (b) your use of the Platform and XAUk complies with all applicable laws; (c) you will not use XAUk for illegal purposes; and (d) all information provided to us is accurate and complete.
17.2. We make no representations or warranties regarding the value, stability, or legality of XAUk in any jurisdiction.
18. LIMITATION OF LIABILITY
18.1. To the fullest extent permitted by law, we, our affiliates, directors, officers, employees, and agents shall not be liable for any indirect, incidental, special, consequential, or punitive damages, or any loss of profits or revenues, whether incurred directly or indirectly, or any loss of data, use, goodwill, or other intangible losses, resulting from (a) your access to or use of or inability to access or use the Platform or XAUk; (b) any conduct or content of any third party; (c) any content obtained from the Platform; or (d) unauthorized access, use, or alteration of your transmissions or content.
18.2. Our total liability to you for any claim arising out of or relating to these TOS or your use of the Platform or XAUk shall not exceed the amount you paid us in fees during the twelve (12) months preceding the claim.
19. INDEMNIFICATION
You agree to indemnify, defend, and hold harmless us, our affiliates, directors, officers, employees, and agents from and against any claims, liabilities, damages, losses, and expenses, including reasonable attorneys' fees, arising out of or in any way connected with (a) your access to or use of the Platform or XAUk; (b) your violation of these TOS; (c) your violation of any third-party right; or (d) any claim that your use caused damage to a third party.
20. GOVERNING LAW AND DISPUTE RESOLUTION
20.1. These TOS shall be governed by and construed in accordance with the laws of England and Wales, without regard to its conflict of law principles.
20.2. Any dispute arising out of or relating to these TOS or your use of the Platform or XAUk shall be resolved exclusively through binding arbitration in London under the rules of the London Court of International Arbitration (LCIA). You waive any right to participate in class actions or class-wide arbitration. If arbitration is unavailable, disputes shall be resolved in the courts of England and Wales.
21. AMENDMENTS
We may amend these TOS at any time by posting the revised terms on the Platform. Your continued use after the effective date constitutes acceptance of the amended TOS. If you do not agree, you must stop using the Platform and XAUk.
22. FORCE MAJEURE
We shall not be liable for any delay or failure to perform resulting from causes outside our reasonable control, including acts of God, war, terrorism, riots, embargoes, acts of civil or military authorities, fire, floods, accidents, pandemics, strikes, shortages of transportation facilities, fuel, energy, labor, or materials, or cyberattacks.
23. SEVERABILITY
If any provision of these TOS is held to be invalid or unenforceable, such provision shall be limited or eliminated to the minimum extent necessary, and the remaining provisions shall remain in full force and effect.
24. ENTIRE AGREEMENT
These TOS, along with any incorporated documents (e.g., Pricing Supplement, Privacy Policy at https://xauk.cash/privacy-policy) constitute the entire agreement between you and us regarding the Platform and XAUk, superseding all prior agreements.
25. CONTACT INFORMATION
If you have any questions about these TOS, please contact us at i@xauk.cash.