All physical unheated gemstones, bullion, and collateral transferred to the custody of the Trust (collectively referred to as the "Trust Assets") shall be titled strictly and exclusively in the name of the Heritage Gemstone Preservation Trust.
The Operating Entity (Kernax Asset Architecture Pvt. Ltd.) retains no ownership, management, or disposal rights over the physical Trust Assets once deposited. The Trustee holds absolute legal title strictly as a custodian on behalf of the registered digital token holders (the "Beneficiaries") on the immutable ledger.
This Trust is established as a structurally independent, bankruptcy-remote vehicle. In the event of bankruptcy, liquidation, restructuring, or dissolution of Kernax Asset Architecture Pvt. Ltd. or any associated promoters:
1. The physical Trust Assets shall not form part of the estate of the bankrupt company.
2. Creditors of the software operations entity shall have absolutely no legal, structural, or equitable claims over the Trust Assets.
3. The Trust shall remain active and bound under this deed to continue protecting and managing the physical gemstone custody exclusively on behalf of the Beneficiaries.
Each circulating token fraction corresponding to a specific physical lot on the Polygon network (ERC-3643 standard) represents a direct, proportionate claim of Beneficial Title.
The holder who accumulates 100% of the circulating digital fractions for a specific, identifiable gemstone holds the absolute legal right to mandate physical delivery. Upon cryptographic execution of the redeemPhysical()contract transaction, the digital tokens are burned (destroyed), and the Trustee is legally compelled to dispatch the physical gemstone from our vaults via secure transit to the claimant's registered address.
100% of the physical Trust Assets shall remain fully covered under a comprehensive All-Risk Specie Insurance policy underwritten by Lloyd's of London or equivalent A-rated insurance syndicates.
In the event of physical loss, theft, damage, or destruction of an asset in custody, the insurance payout represents a direct asset of the Trust. The Fiduciary Trust is legally mandated to route the insurance proceeds directly to the beneficial token holders corresponding to that specific lot, completely independent of the operating entity's capital or liabilities.