The gold standard trading facilities are a gold-denominated commercial instrument for transaction facilitation, such as a gold promissory note, gold remittance draft, gold letter of credit and other gold-denominated bills.

A GPN is a gold standard trading facility using Gold Intrust as a third party to guarantee the acceptance of the equivalent gold contained in the promissory note. GPN is secure, swift, transparent, compliant, and low in cost. It can be widely used in all kinds of global business transaction scenarios. It is an emerging gold standard trading facility.

Gold Intrust aims to provide our clients with a gold-denominated transaction medium and with a variety of gold-denominated transaction facilities to assist the clients in completing commercial transactions anywhere in the world.

In addition to paper promissory notes, gold promissory notes also exist in the form of e-notes. eGPN is an electronic trading facility based on gold promissory notes.

The eGPN is formed by three sets of keys, one set of which is called the authorisation key, which is used to record the history of the spin-off and merger pathway, the transfer history and the current owner of the note. This group of keys is encrypted and managed by Gold Intrust. The other two sets of keys are called the sign-out key and the sign-in key, also collectively called the transaction key, generated by encrypted identification information of the transaction parties. The sign-out party and the sign-in party must exchange transaction keys through the mutually agreed channels, and enter the transaction key obtained at their respective client terminals. Only when the two sets of transaction keys and authorisation keys are matched together, the complete GPN information would be successfully decrypted and verified to enter into force. Thus the transaction parties could complete the transfer of the GPN.

If the sign-in party is not a client of Gold Intrust, this party can directly open an account with received sign-out key in our system, once receive the transaction key from the sign-out party, shall provide their sign-in key obtained to the sign-out party to achieve GPN transfer.

For the initial issue of a GPN, clients shall demand Gold Intrust to issue a named electronic GPN for the corresponding gold bullion only after they have purchased the full amount of such gold bullion in advance and deposit it into dedicated vaults. For security reasons, Gold Intrust use the Good delivery bullion produced by the Perth Mint for the gold corresponding to the GPN. Unless the GPN is withdrawn, the Good Delivery gold bullion corresponding to the GPN will remain in the dedicated vaults, and no one can divert the above-mentioned gold.

This promissory note can be divided into a minimum unit of 0.001 ozt, which is one-thousandth of a troy ounce, for various commercial transactions. The sign-out party of the GPN may, according to the agreed transaction requirements, deliver all or part of the record amount in the GPN to the counterparty.

After a GPN issued, the client can hand over a certain amount of the GPN to the counterparty conditionally or unconditionally to achieve various commercial transactions.

The sign-in party of the GPN may choose to continue to deliver all or part of the total amount in the GPN to other counterparties, or ask Gold Intrust to withdraw the corresponding amount of gold bullion or cash, which shall be limited to main currencies such as US dollar, pound sterling, Australia dollar, Euro and Swiss franc while the currency exchange costs are paid separately by the withdrawer.

To withdraw gold using GPN, clients shall submit the withdrawal application within the system. Please notice that the withdrawal of a GPN related to any multi-party transaction requires the consent of the sign-out party. We shall complete the withdrawal application (if approved) within one working day and follow the two pathways to implement the withdrawal procedures:

• Cash withdrawals cost a total of 5% of the value as handling fee will be deducted, of which 3% is withdrawal depreciation, arising from the repo of the gold bullion by financial institutions from LMBA members). Gold Intrust shall transfer the corresponding gold bullion to ASX or LMBA for sale and transfer the funds to the client's bank account via bank wire transfer. Due to the trading time limit, Gold Intrust shall complete the transaction within the next trading day after the withdrawal application approved. Before the start of trading time (ASX Eastern Australia time 9:00 or LMBA London Greenwich time 9:00), clients shall be free to inform Gold Intrust to terminate or defer the transaction.

• Gold withdrawals, limited to Good Delivery gold bullion, cost a handling fee, which is 2% of the value, and additional secured transportation and withdrawal cost may also be generated. Gold Intrust shall notify the client to receive such bullion in the designated vault. The transferee must hold the original certificate verified by Gold Intrust and sign for transfer. For the sake of ensuring the safety of both parties involved, large amount withdrawals, which exceed 1000 ozt, will require multiple withdrawals, where any single withdrawal cannot be withdrawn within the same day.

Since any physical gold corresponding to the GPN has a fixed storage cost, it shall be covered by the transaction processing fee (details as below). We DO NOT recommend letting GPN lie idle for long-term after issued. To maintain healthy operating cash flow, we prudently require that any client who issued a GPN and the sign-in/sign-out party who transfer the GPN again shall deposit 5% of the total value of the GPN as a margin deposit before the GPN activated for sign-out. Any successful activation shall be valid for three years. If a GPN has not been signed out for over a whole year since the activation, the initial issue or the latest sign-in, the relevant maintenance fee will be deducted from the margin deposit. 1% per annum of the GPN balance shall be deducted quarterly. If the GPN has not been signed out for a long time, we will notify the client to make up the margin up to 5% before the end for the third year to retain the GPN invalid condition; if the margin is not covered, when the deposit has been deducted out, the GPN will be automatically frozen and cannot be signed out and delivered, but only be withdrawn by the holders. The withdrawal fee which is 2% of the GPN value will be deducted, while a withdrawn depreciation of 3% and the unpaid gold storage cost will also be charged. The withdrawer shall pay all the above cost.

After the GPN is signed out, the margin balance deposited by the sign-out party will automatically be released, and refund to the client's bank account within the next business day with no charge.

Bilateral Transactions

The transaction processing fee for each GPN sign-out/sign-in settlement is five-thousandths, 0.5% of the total amount of transaction, which can be shared by the two parties involved or assigned to any one of the parties.

Tripartite Transactions

The transaction processing fee for each sign-out/sign-out of the GPN is five-thousandths 0.5% of the total amount of transaction, which can be shared by all parties involved in the transaction or can be assigned to any one or more parties involved. Any intermediary that does not hold the GPN can be exempt from the transaction processing fees.

Cash / Gold Withdrawals

To withdraw cash using GPN, clients shall cover a withdrawal fee of 2%, generated by the initial gold purchase cost of 1% and gold sale cost of 1%, and a withdrawal depreciation of 3%, generated when gold is redeemed by the Mint or on LBMA Market. All in total is 5%.

For withdrawing gold using GPN, the withdrawal fee is 2%, generated by the initial gold purchase cost, and security delivery/pick up expenses shall also be covered by the withdraw party separately.

To hold a GPN without using it will generate an additional charge which is derived from the cost of gold storage. The storage cost is 1% per annum of the total value of gold and is charged quarterly.

If a GPN has been held for more than one year, the GPN margin deposit will be deducted by 1% due to the storage cost for that year.

If a GPN has been signed out within one year since issued, no charge of storage expenses will be debited.

If a GPN has been held for more than 3 years and the margin is not sufficient to cover the storage cost, we will inform the holder of making up margin deposit to the due date. As of the expiration date, if the storage fee fails to cover up, the GPN will be automatically frozen. According to the relevant provisions of the GPN principal agreement, the total amount of gold contained in the GPN will be forcibly deducted by the corresponding amount to make up for the storage expenses (with the withdrawal depreciation of gold) until the amount of the GPN is all deducted or cashed out by the holder.

Gold is a safe-haven asset with a lower risk than sovereign credit currencies, and the interest of gold is naturally lower than that of the mainstream currency. At present, many countries adopt negative interest rates monetary policies, such as Japan and the Euro area, and the Federal Funds Rate of the US dollar is only 1.5% (April 2018 updated). Therefore, at this stage, to use gold as a borrowing medium could hardly accrue interest.

In the meantime, Gold Intrust establish trust structures for most of our clients to protect their gold, which means Gold Intrust has no property rights or chance to use or control stored gold bullion. Even if Gold Intrust incurred bankruptcy, the stored gold would not become a "bankruptcy asset", but continue to exist as a Trust Asset (Trust Fund) protected by the law, while the client removes or change the trustee.

The above behaviour is entirely different from clients' depositing money in the bank. Deposits in the bank accounts namely belong to the clients. The deposits have become disposable assets of the bank and are used for loans under the premise of taking risks, to achieve interests. Once the bank goes bankrupt, the deposit will become a part of the "bankruptcy assets". Whether can be returned to depositors depends on the bankruptcy liquidation rules. Unless the deposit has been insured, the client’s deposit may lose due to bankruptcy liquidation.

Therefore, to store gold at Gold Intrust is a commissioned storage. As the depositary, Gold Intrust have no right to use the gold for lending or other investment activities, nor can it produce interest. The depositary cannot create interests for the storage of gold, while the client must cover the storage cost regarding the storage period.

If the clients wish to gain interest from the gold assets they hold, under the premise of taking full risks voluntarily and the clients shall select and charge interests from the third parties who wish to lend the gold or GPN.

Gold Intrust DO NOT provide any gold lending services NOR provide clients with any relevant information or recommend any third party. Gold Intrust DO NOT ASSUME ANY RESPONSIBILITY for the risk arising from clients’ lending behaviour, including but not limited to possible losses and disputes.

Security Mechanism of Property Rights: To use the gold standard trading facility for business transactions is swift, easy and extremely secure. Since every single GPN must have been accompanied by the equal amount of physical gold, the gold bullion is stored in dedicated vaults and protected by the legal structures of trust. It cannot be overdrawn, misappropriated, sold off, pledged or claimed by anyone including Gold Intrust, the sign-out party, and the sign-in party. During a commercial transaction, the gold is under the title of the sign-out party in full amount, and cannot be pledged, sponsored or misappropriated by any third party.

Either party does not have an opportunity to issue shorts or overdrafts of gold corresponding to the GPN, effectively reducing fraud in commercial transactions.

Transfer Security Mechanism: The two parties involved in the transaction must be certified by each other and exchange their transaction keys for completing the transfer, effectively avoiding commercial fraud and theft.

Transaction Security: The fundamental of the gold-based trading facility is "material barter", and the simple directly two-way exchange of property rights and information has stronger legal validity than other transaction methods.

Integrated Trading / Compound Trading: This model is suitable for authorising trading and other pre-authorization transaction modes. It shall fully guarantee the right of third parties (authorizer) or initial sign-out party to know and execute right to reject the dangerous transactions of authorised persons (subsequent sign-out parties) to ensure their claims to be realised and guaranteed.

Confidential and Transparent Transaction: Since the transaction is completed offshore, it is possible to choose to disclose it to a third party or choose to keep confidential for guarding trade secrets. In the meantime, the transaction is entirely transparent to both parties, and either party can instantly access the system to see the full information of the transaction, effectively preventing the fraud in the transaction.

Security Protection Period (Optional): After the GPN transferred, the sign-in party may not withdraw cash/gold or re-sign-out during the term of protection.

LPA Transaction (Optional): Gold Intrust provide LPA (Lasting Power of Attorney) service to the transaction parties. Our professional team carefully review the conditions of a specific transaction, perform due diligence on trading counterparties, analyse transaction risks, and formulate protection plans against contingent risks, comply with transactions process, decide whether to trade and execute a trade or handle a possible dispute as a commissioner.

We adopt our particular Trinity Circular Verification using triple key (authorised key, sign-out key, sign-in key) nested cycling verification to secure transactions. Any two-stage key requires a third-stage key to complement information and decryption. The system can be hardly forged, extremely difficult to crack, effectively reducing the risk of theft and illegal misappropriation.

The two parties involved in the transaction select fields randomly according to the transaction elements. The two fields are calculated by our system according to the preset encryption algorithm to get the two transaction keys (sign-out key and sign-in key), which are complementary to the authorisation key. During the transaction, the two parties exchange transaction keys through mutually agreed channels (paper letters, encrypted communication software, etc.), both parties enter their exchanged key into the system, and the system verifies if the three keys are cyclically complementary. After successful verification, the GPN shall be released for transfer. Such unique complementary keys are encrypted by the three-phase information mastered by the three parties. Thus neither party can simultaneously obtain the other two parties' unencrypted information, and thus it is impossible to crack.

The Trinity Circular Verification system represents the most edged cryptography technology in the world, ensuring the transaction pathway to be unique and reliable, thoroughly protecting asset security.

The clearance system of GPN is operated by an independent entity established by Gold Intrust in Switzerland. This clearance system shall fully guarantee the bi-directional transparency of transaction information to all parties involved in the transaction, as well as the clearance entity strictly complies with Swiss law to protect the privacy of the transaction.

Gold Intrust shall strictly protect the confidentiality of trading information from anyone other than the transaction party, except for legitimate requests from law enforcement agencies and judicial authorities of the Swiss government, as well as requests for disclosure by third countries through the consent of the Swiss adjudication.

Based on the advantages of Switzerland's unique business environment, Gold Intrust also provide evidencing service limited to the gold standard trading facility) for commercial dispute arbitration and judgment under the ICC rules which shall effectively reduce the potential disputes, as well as the time and expenses, cost by dispute resolution.

In any place connected to the Internet around the world, clients can use the gold standard trading facility for their business all the time. No exchange fluctuations. Fair trading among all parties involved.

The transaction processing fee of the gold standard trading facility is low, with a minimum of 0.5%. The cost is much lower than any bank transfer and remittance. As widely used, it is an ideal choice for block trade.

Also, Gold Intrust provide clients with professional consulting services for various transaction structures. We rely on professional legal teams and legal work resources all over the world to provide global transaction compliance services with gold standard trading facilities, assist our clients to complete multi-party, cross-border or complex structure (nested) transactions that were difficult to accomplish in the past, help our clients to achieve the maximum value of their transactions.