PAX Gold

The terms describe PAXG as akin to a warehouse receipt for the holder's beneficial ownership of a pro rata portion of allocated gold.

“Your PAXG tokens are akin to a warehouse receipt representing your beneficial ownership”

Paxos Trust issues PAXG under a specific approval from the US Office of the Comptroller of the Currency (OCC).

“Paxos Trust issues PAXG pursuant to specific approval from the OCC”

Paxos Trust holds one troy ounce of London Good Delivery gold in custody for the holder's benefit for every PAXG bought.

“For example, if you purchase five PAXG, Paxos Trust will hold in custody an additional five troy ounces of London Good Delivery Allocated Gold for your benefit.”

For Paxos Trust customers, Paxos' General Terms, which apply alongside the PAXG terms, are governed by New York law, with disputes going to arbitration in New York.

“The language of the arbitration shall be English and the Agreement shall be governed by the laws of the State of New York.”

Physical redemption requires at least 430 PAXG plus a fee per London Good Delivery bar.

“You must redeem a minimum of 430 PAXG tokens plus the fee set forth in the Paxos User Guide”

Paxos may refuse to issue, convert or redeem PAXG for a verified customer if that customer's Paxos account is suspended or terminated.

“We may also refuse to issue PAXG to, or convert or redeem PAXG from, a verified Customers in the event of the suspension and/or termination of our account with Paxos”

Paxos may charge storage fees to all holders by issuing new PAXG to itself, which dilutes existing tokens.

“Paxos may charge storage fees to all token holders by issuing to Paxos new PAXG tokens, thereby diluting the value of existing PAXG tokens.”

Holders can convert PAXG with Paxos for US dollars, unallocated gold or allocated gold, subject to the limits in the terms.

“Once you have PAXG tokens, you can transfer them, trade them, keep them, use them to pay persons that will accept PAXG, or convert them for US dollars, Unallocated Gold and Allocated Gold with Paxos, subject to the limitations below.”

Only verified Paxos customers can buy PAXG from Paxos or convert or redeem it with Paxos.

“Only verified Customers may purchase PAXG from us or convert or redeem PAXG from us.”

The gold is London Good Delivery bars held by Paxos Trust on a segregated basis for PAXG holders in LBMA-approved security carrier vaults.

“London Good Delivery gold bars, which are held by Paxos Trust on a segregated basis”

The allocated gold that backs PAXG is custodied in LBMA vaults and audited monthly.

“The allocated gold that backs PAXG is custodied in LBMA vaults and audited monthly.”

Dollars paid for PAXG are converted into London Good Delivery gold to keep one allocated troy ounce per token.

“The US dollars used to purchase PAXG are promptly converted into an equivalent amount of London Good Delivery gold, as described below, to maintain a one-to-one ratio of PAXG to the amount of London Good Delivery Allocated Gold bars.”

Paxos states it has the ability and the right to freeze and upgrade all PAXG tokens on an aggregate basis.

“Paxos has the ability and the right to freeze and upgrade all PAXG tokens (on an aggregate basis), regardless of where the PAXG is being held.”

Paxos may charge storage fees by issuing new PAXG tokens to itself, announced at least 30 days in advance.

“Paxos may charge storage fees to all token holders by issuing to Paxos new PAXG tokens”

Paxos states it has the ability and the right to upgrade all PAXG tokens on an aggregate basis.

“As part of the ERC20 smart contract and as part of the Services, Paxos has the ability and the right to freeze and upgrade all PAXG tokens (on an aggregate basis), regardless of where the PAXG is being held.”

Paxos may change its fee structure or raise fees at any time.

“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.”