Introduction

This UGOLD Token Conversion to Physical Gold Policy (the “Conversion Policy”) governs the terms and conditions under which holders of UGOLD Tokens may request conversion of UGOLD Tokens into physical gold in the form of coins or bars. This Policy forms part of and is incorporated by reference into the UGOLD Terms of Service and related agreements.

UGOLD Inc. (“UGOLD,” “we,” “us,” or “our”) operates a digital gold token system designed to provide token holders with the right, subject to this Policy, to convert UGOLD Tokens into physical gold products.

 

1. Core Principles

1. Spot Gold Reference. The economic reference value of one (1) UGOLD Token is one (1) troy ounce of gold, priced by reference to prevailing spot gold prices in international markets.
   
   2. Token-to-Gold Equivalence. One (1) UGOLD Token represents the right to request delivery of one (1) troy ounce of physical gold, subject to the conditions, fees, and limitations described in this Policy.
   
   3. Right to Convert. Any eligible holder of UGOLD Tokens may request conversion of UGOLD Tokens into physical gold in the form of gold coins or gold bars, as offered by UGOLD or its authorized production and logistics partners from time to time.

 

2. Conversion Request Process

1. Submission of Request. Conversion requests must be submitted through official UGOLD channels, wallet interfaces, or designated service providers.
   
   2. Verification and Eligibility. All conversion requests are subject to identity verification, compliance checks, sanctions screening, and confirmation of token ownership and availability.
   
   3. Token Deduction. Upon acceptance of a conversion request, the corresponding number of UGOLD Tokens will be debited, locked, or otherwise removed from circulation in accordance with UGOLD’s operational procedures.
   
   4. Production and Delivery. Physical gold will be produced and delivered by UGOLD or its authorized partners in the form and specifications available at the time of the request.

 

3. Fees and Costs

1. Production Fee. A production fee equal to ten percent (10%) of the converted gold amount (or its equivalent value) is payable by the token holder. This fee covers minting, fabrication, quality control, and related production costs.
   
   2. Logistics and Customs Costs. In addition to the production fee, the token holder is responsible for all logistics, shipping, insurance, handling, customs, duties, taxes, and import/export charges associated with delivery of the physical gold. These costs vary by destination, method of delivery, and regulatory environment.
   
   3. Payment of Fees. All applicable fees and costs must be paid in full before production or shipment of physical gold will commence. Fees are non-refundable once production has started.
   
   4. No Fee Guarantees. UGOLD does not guarantee any fixed logistics or customs costs. Such costs depend on third-party providers, carriers, insurers, and governmental authorities.

 

4. Form, Specifications, and Availability

1. Product Form. Physical gold may be delivered as coins or bars in sizes and specifications determined by UGOLD and its partners at the time of conversion.
   
   2. Manufacturing Standards. Gold products will be produced according to applicable industry and refinery standards, but designs, markings, packaging, and exact specifications may vary.
   
   3. Availability Constraints. UGOLD does not guarantee continuous availability of any specific coin, bar, size, or format. Substitutions or delays may occur due to market, regulatory, or supply-chain conditions.

 

4. Form, Specifications, and Availability

1. Product Form. Physical gold may be delivered as coins or bars in sizes and specifications determined by UGOLD and its partners at the time of conversion.
   
   2. Manufacturing Standards. Gold products will be produced according to applicable industry and refinery standards, but designs, markings, packaging, and exact specifications may vary.
   
   3. Availability Constraints. UGOLD does not guarantee continuous availability of any specific coin, bar, size, or format. Substitutions or delays may occur due to market, regulatory, or supply-chain conditions.

 

6. Risk Disclosures

1. Market Risk. The spot price of gold fluctuates. The economic value of UGOLD Tokens and the timing of conversion may be affected by market conditions.
   
   2. Operational and Third-Party Risk. Production, logistics, and delivery involve third parties. UGOLD is not responsible for delays, failures, or losses caused by third-party service providers except as required by applicable law.
   
   3. Regulatory Risk. Laws governing precious metals, exports, imports, and digital assets vary by jurisdiction and may change, potentially affecting availability, cost, or feasibility of conversion.
   
   4. No Guaranteed Delivery Time. UGOLD does not guarantee delivery within any specific timeframe.

 

7. Compliance and Legal Restrictions

1. Jurisdictional Limitations. Conversion services may not be available in all jurisdictions. Requests from restricted or sanctioned jurisdictions may be refused.
   
   2. Legal Holds and Freezes. UGOLD may delay or refuse conversion where required by law, court order, sanctions, or regulatory obligations.
   
   3. Right to Refuse or Suspend. UGOLD reserves the right to refuse, suspend, or cancel any conversion request if required by law or regulation, necessary for risk management or compliance, or if the user fails to satisfy verification or payment requirements.

 

8. No Investment or Profit Guarantee

UGOLD Tokens are not investment products and are not sold with any promise of profit. The conversion feature is a utility and settlement feature that allows eligible holders to request physical gold, subject to fees, costs, and conditions described in this Policy.

 

9. Limitation of Liability

To the maximum extent permitted by law, UGOLD shall not be liable for delays in production or delivery, acts or omissions of refineries, mints, carriers, insurers, or customs authorities, changes in fees, costs, or regulations, or indirect, incidental, or consequential losses arising from conversion requests.

 

10. Amendments

UGOLD may update or amend this Conversion Policy from time to time. The current version will be made available through UGOLD’s official channels. Continued use of UGOLD Tokens or submission of conversion requests after any update constitutes acceptance of the revised Policy.

 

11. Contact

Questions regarding conversion requests or this Policy may be directed to support@ugold.co.