Table Of Contents

Redeeming KAU and KAG

What is Physical Redemption?

Physical redemption refers to withdrawing or repaying the fixed-income securities (e.g., precious metals) stored with a financial institution or company. For Kinesis, it specifically means converting the digitalized KAU and KAG currencies back into their underlying physical bullion.

Key Highlights of Kinesis Physical Redemption

• Accessibility for Small Investors:
  • Traditional market providers set high minimums for silver redemption, such as 10,000 ounces, which is impractical for many investors.
  • Kinesis counters this by offering redemption options starting at just 200 ounces of silver or 100 grams of gold.
• Practical and Affordable:
  • By lowering minimum requirements, Kinesis makes precious metal ownership feasible for a broader audience.
  • Their low withdrawal fees further support cost-conscious investors.

Redeeming Gold or Silver from Kinesis

Kinesis offers a straightforward process for redeeming the gold and silver bullion that underpins its digital currencies, Kinesis Gold (KAU) and Kinesis Silver (KAG). Here’s what you need to know:

Eligibility for Redemption

• Right to Redemption: All holders of Kinesis currencies have the right to redeem the corresponding physical gold or silver bullion.
• Minimum Redemption Amounts:
  • Silver: 200 ounces.
  • Gold: 100 grams.
• Conditions: Subject to minimum withdrawal requirements and logistical arrangements.

Redemption Process

• Logistics Partners:
  • Loomis
  • Brinks
  • Malca-Amit
• Mechanics of Redemption:
  • Physical bullion is delivered to the holder.
  • Digital representation of the redeemed bullion is destroyed.
  • The corresponding currency is removed from circulation.

Market Accessibility

• Lower Barriers to Entry:
  • Unlike many providers requiring high minimum redemption amounts (e.g., PSLV’s 10,000 ounces of silver), Kinesis offers more accessible minimums.
  • This inclusivity ensures that average investors can participate in precious metal ownership.
• Affordable Withdrawal Fees:
  • Fee Structure: 0.45% of the redeemed amount plus a flat $100 delivery cost.
  • Competitive rates make redemption cost-effective compared to industry standards.

Investor Benefits

1. Transparency:
   • Regular independent audits provide confidence in the 1:1 metal backing.
2. Flexibility:
   • Small redemption thresholds accommodate individual financial capacities.
3. Security:
   • Physical possession of precious metals ensures long-term wealth preservation.
4. Affordability:
   • Lower fees and delivery costs make Kinesis a cost-effective solution compared to competitors.

Kinesis bridges the gap between digital currency and physical bullion ownership, offering a practical, accessible, and transparent solution for securing wealth through precious metals.