Rules of Engagement &
Market Integrity
Welcome to the Kernax Secondary Trading Desk rulebook. Our marketplace operates strictly under the legal parameters of the IFSCA FinTech Sandbox. Read our comprehensive guides, DOs and DON’Ts, and interactive diagnostics below.
I. The 5 Core Tenets
KYC Mandate
Only fully whitelisted corporate and individual wallets (ERC-3643 verified) can open, match, or settle orders. Anonymous trading is strictly blocked.
Full Backing
Fractional tokens are backed 1:1 by physical unheated gems held in our independent preservation trust. Short-selling is mathematically impossible.
Fiat Settlement
All transactions are settled instantly in Euro balances (€). Trading funds are drawn directly from your secure client bank escrow wallet.
No Margin
To protect capital from systemic leverage crises, margin lending, leveraged derivatives, and futures options are strictly prohibited on this desk.
Atomic Swaps
Trade execution relies on on-chain smart contracts. Asset transfer and payment happen in the same block—eliminating counterparty delivery risk.
II. Interactive Scenario Solver
Simulate and understand operational resolutions for common trading hurdles.
Select Your Current Scenario
Resolution Flow
On-Chain Transaction Failed / Reverted
The ERC-3643 standard restricts transfers to whitelisted addresses. If your P2P bid/ask matching transaction failed, it is mathematically blocked because either your wallet or your counterparty's wallet has incomplete compliance status or an EORI record mismatch.
Verify your counterparty has completed their corporate AML screening on their Identity profile.
Ensure your EORI number matches your whitelisted Polygon address registration precisely.
Confirm your available cash balance is sufficient to cover the transaction value + maker fees.
III. Behavioral Matrix
Strict Market DOs
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Maintain Active Whitelist: Keep your corporate beneficial ownership (UBO) records up-to-date with compliance officers to avoid automated whitelist suspension.
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Ensure Sufficient Liquidity: Fund your Euro virtual balance prior to placing limit orders to avoid automated cancellation by our on-chain match engine.
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Verify Custody Telemetry: Check your asset position’s daily Malca-Amit safekeeping receipts to confirm physical storage matches your ledger balance.
Prohibited Actions
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Do Not Wash-Trade: Placing buying and selling orders between accounts with matching beneficial owners to fake market volume is blocked and leads to terminal blacklisting.
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No Direct Wallet Transfers: Do not attempt to execute off-portal private key swap settlements. Doing so breaks fiduciary custody covenants and voids specie insurance protection.
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Do Not Exceed Sandbox Limits: Individual sandbox accounts are capped at €250,000 in holdings. Do not attempt to bypass this cap without registering for our Enhanced Enterprise Tier.
IV. Searchable FAQ Console
Enter search queries below to filter specific trading or regulatory answers instantly.
The Secondary Trading Desk is designed to provide immediate liquidity to private wealth clients holding fractional gemstone assets. Instead of waiting years to liquidate a rare sapphire via traditional auction houses, you can list your digital fractions instantly to other verified users.
Yes. During our active IFSCA regulatory sandbox testing phase, individual accounts are capped at €250,000 in total holdings. To expand your investment limit, please contact our compliance desk to apply for the Enhanced Enterprise Tier.
Absolutely. Any unallocated Euro cash balance is held strictly within fully segregated corporate escrow client bank accounts at premier German financial institutions. This capital is entirely legally separated from the operational software entity's balance sheet.
V. Regulatory & Legal Disclaimer
1. FinTech Sandbox Constraints: The Kernax Secondary Trading Desk is operated pursuant to sandbox rules established by the International Financial Services Centres Authority (IFSCA). All transactions executed herein utilize test-validated smart contracts and virtualized cash escrows to prove network latency, matching efficiency, and automated compliance regimes. Deployed capital remains fully secured by physical gemstones held under bankruptcy-remote fiduciary deeds.
2. Transaction Finality: Under standard DLT guidelines, all settled P2P matches are irreversible and final once confirmed by Polygon mainnet consensus block heights. Kernax cannot revert or alter ledger transactions.
3. Capital Risk Disclosure: Physical gemstone valuation is subject to supply scarcity and wholesale luxury indexes. While unheated gems historically command substantial Substance Value (Substanzwert), market movements may fluctuate.