Token / Redemption
Holder’s Rights & Redemption Options
Introduction
Each holder of Edelcoins has a co-ownership right in a basket of metals stored in the warehouse. The metals are kept for the benefit of the holders of Edelcoin. The information below recaps the rights of the holders of Edelcoins and explains how holders of Edelcoins can redeem their Edelcoins against the underlying metals or cash.
Rights of holders of Edelcoin
Edelcoin is a payment & asset token under Swiss law that confers the acquirers / users the following rights:
- The Right of co-ownership of the underlying commodities reserve
- The Right to transfer the Edelcoin to other users over the blockchain platform and infrastructure
- The Right to sell the coins on any recognized / onboarded exchange listing Edelcoin, against avail able pairs
- The Right to redeem the coin against the associated metals - according to the conversion terms / possibilities
Redemption of Edelcoins
There are three redemption scenarios for holders of Edelcoin (option 1-3).
•Option 1: Redeeming the underlying metals - Holders of Edelcoin may request from the EdelSwiss AG to hand out a title to goods against transferring Edelcoin in the amount corresponding to one title to goods. The warehouse will release the amount of metals represented by the title to goods against presentation of the title to goods.
As an alternative to Option 1, the holders of Edelcoins may request support from the redemption facilitator against a fee, by entering into a redemption facilitation agreement (option 2 and 3):
•Option 2: Redeeming the underlying metals in cash - Holders of Edelcoin with an amount of Edelcoins which represent one title to goods may appoint the redemption facilitator to handle the title to goods, and to organize the sale of the metals. The holders of Edelcoin will receive the sale proceeds less a fee component.
•Option 3: Redeeming the underlying metals in cash after bundling of redemption interests - The holders of Edelcoin who do not have Edelcoins in the amount of exactly one title to goods, but at least an amount specified by the redemption facilitator may request the redemption facilitator to bundle redemption interest of various holders of Edelcoins. Once redemption interest in the value corresponding to at least one title to goods have been bundled, the redemption facilitator will proceed with the same steps as set out in Option 2 and distribute the sales proceeds less a fee component to the holders of Edelcoins pro rata to their redeemed Edelcoins.
In addition to the option 1-3 above, the holders of Edelcoin may also have the option to purchase goods with the Edelcoins:
•Purchasing of goods with Edelcoins - As an alternative to redeeming the Edelcoins (see options 1-3 above), holders of Edelcoins may purchase goods of equal value in the Edelcoin Boutique.
All scenarios are subject to Swiss Anti-Money Laundering Regulations and to a KYC checks.
Overview of exit scenarios for Edelcoins
Overview of the minimum redemption amounts
For further information and initiation of the redemption process, please reach out to ir@edelcoin.com