Physical Asset Vaulting &
Bankruptcy Remoteness
Demystifying legal structures and physical custody. At Kernax, unallocated balances or tokenized gemstone holdings represent fractional property rights managed under an independent, bankruptcy-remote trust and backed by premium Lloyd's of London Specie coverage.
I. The Insolvency Stress-Tester
Simulate a software platform bankruptcy to test the fiduciary firewalls isolating your physical assets.
Select Risk Simulation
Select a scenario button below to see how our trust-based legal structures completely isolate and protect your physical assets compared to standard, unbacked platforms.
Fiduciary Shield Active
Software Platform Bankruptcy Protection
In the event of a Kernax software company default, the physical gemstones remain entirely isolated. Under our master trust deed bylaws, the assets are owned by the Heritage Gemstone Preservation Trust, keeping them out of reach of Kernax creditors and liquidators. Your digital fractions represent direct, beneficial property rights.
II. Interactive Audit Simulator
Run a real-time cryptographic audit checking physical vault inventory against blockchain contract balances.
Audit Control Panel
III. The 4 Pillars of Custody
1. Class-3 Custodial Safekeeping
Every physical gemstone Lot settled into the Trust is securely locked inside Class-3 vaults inside the GIFT City SEZ (India). Operated independently by Malca-Amit, the facility boasts 24/7 armed response, dual-factor biometric access, seismic sensors, and full climate control.
2. Lloyd's Specie Policy
All physical holdings are covered 1:1 against theft, damage, loss, or destruction under an All-Risk Specie Insurance policy underwritten by Lloyd's of London. Payouts representing replacement value are legally assigned directly to the Fiduciary Trust, protecting Beneficiaries.
3. Monthly Trustee Audits
Under our master trust bylaws, the independent Board of Compliance Trustees (led by Jamshid Abdul Karim) physically inspects the vault boxes monthly, validating physical carat weights and issuing statutory Proof of Reserve audit stamps.
4. "Burn-to-Wear" Delivery
The ultimate proof of substance: You possess the absolute legal right to physical redemption. Accumulate 100% of a gemstone's fractions, execute the redeemPhysical() burn transaction, and the Trustee is legally compelled to ship your stone directly to your doorstep.
IV. Searchable FAQ Console
Filter physical safekeeping, trust deeds, or specie insurance queries instantly.
Fiduciary Asset Vaulting means that your investment is completely backed 1:1 by physical, investment-grade unheated gemstones stored in secure vaults. These assets are held in trust under a bankruptcy-remote vehicle, protecting them from the liabilities or default of the platform developer.
All gemstones are physically vaulted in the high-security facility operated by Malca-Amit within the GIFT City Special Economic Zone (SEZ), Gujarat, India. This secure branch features climate control, seismic sensors, and 24/7 armed escort response.
Yes. Unallocated cash balances are kept in fully segregated, bankruptcy-remote virtual client escrow bank accounts with our Tier-1 German partner, Deutsche Bank AG. These funds are legally protected up to €100,000 under European statutory guarantee guidelines.