Custody & Audit Procedures

The physical gold bars backing the xGold NFT tokens are securely stored in Brink’s high-security vaults. Brink’s is a globally recognized provider of precious metals custody services, offering robust security measures, regular audits, and comprehensive insurance coverage to ensure the safety and integrity of the stored assets.

Security Measures

Brink’s vault facilities are equipped with state-of-the-art security systems, including:

• 24/7 surveillance with advanced intrusion detection systems and CCTV monitoring. Conducted by on site Brinks Control room 24 hours and 365 days a year. Alarms additionally monitored by independent ARC.
• Access control systems, such as coded key cards and biometric scanners, to restrict entry to authorized personnel. Cards and biometrics supervised by UK Security team.
• Airlocks with bullet-resistant doors and remotely controlled locks to secure entry points.
• Multiple alarm systems, with at least one system being physically and operationally independent from the others.
• Secure storage protocols, where precious metals are sealed in tamper-evident containers, each assigned a unique identifier linked to the client's account.

These measures are designed to meet or exceed industry best practices for the storage of precious metals.

Audit and Inspection Procedures

Brink’s implements rigorous audit and inspection protocols to maintain transparency and accountability:

• Regular internal audits are conducted to reconcile physical inventories with client records. All Gold in vaults is audited by security team monthly against inventory.
• Independent third-party audits are performed periodically to verify the quantity and quality of the stored precious metals.
• Compliance with regulatory standards, including providing annual audited financial statements and permitting regulatory bodies to examine books and records as required.
• Daily reconciliation processes, where applicable, to ensure that client holdings match the records provided by Brinks.

These procedures are designed to provide assurance to clients, auditors, and regulators regarding the integrity of the stored assets.

Insurance Coverage

To mitigate risks associated with the storage of precious metals, Brink’s maintains comprehensive insurance policies:

• All-risk insurance coverage per vault or secure facility.
• Coverage includes protection against theft, loss, damage, mysterious disappearance, and employee infidelity.
• Insurance policies are structured so that previous claims do not reduce the coverage available for future claims.

This level of insurance ensures that clients' assets are protected against a wide range of potential risks.