Draft, pending counsel
Issuance and redemption terms (testnet)
Terms for test USDMD on Midas Chain testnet. There is no mainnet USDMD.
This document is a draft. It has not been reviewed by counsel, it has no effective date, and it does not create any right or obligation. Items marked TBD are facts that have not been settled. It describes a testnet token that has no value.
1
What test USDMD is
- Test USDMD is a token on Midas Chain testnet, a test network. It has no value, is not sold, and is not money, a deposit, electronic money, a security or a claim on anyone.
- There is no mechanism to convert test USDMD into mainnet USDMD, into any other token, or into anything of value, and none is promised. Acquire it only to test.
- The testnet reserve is made of MockXAU, a token that is not gold and is backed by nothing. A statement that test USDMD is backed by gold would be false.
2
The issuer
- The issuer of mainnet USDMD has not been constituted. It is proposed to be a special purpose company, a subsidiary of Krysos, separate from the issuer of MIDS, so that USDMD's reserve is not exposed to any other business. [TBD: issuing entity, jurisdiction and registration]
- No licence to issue a stablecoin or electronic money is held. No mainnet USDMD will be minted before the issuer holds the licence its jurisdiction requires. [TBD: licence and regulator]
- The testnet contracts are operated by the Krysos team for testing only.
3
Minting
- On testnet anyone may mint by delivering an accepted reserve asset to the controller contract. No identity check applies on testnet. On mainnet, minting will require identity verification and sanctions screening at the point of mint. [TBD: eligibility and excluded jurisdictions]
- A mint is valued at the oracle price, less the asset's haircut and the mint fee published on the fees page. The controller refuses a mint when minting is paused, when the price is unavailable, when the latest proof of reserves is older than the permitted age, when the daily mint cap is full, when the asset would exceed its share of the reserve, or when the collateral ratio would fall below 1.02.
4
Redemption
- Any holder may redeem by returning USDMD to the controller. Redemption is paid in the reserve asset, at the oracle price, less the redeem fee. On testnet there is no redemption in US dollars or in any other currency, and none is planned for the testnet.
- Redemption is limited per 24-hour epoch to a published share of supply, with a published minimum. It needs an available oracle price. It cannot be paused, and it is not refused because the collateral ratio is low.
- Mainnet redemption terms, including any delivery of physical gold, minimums and fees, are not set. [TBD: mainnet redemption assets, minimums, delivery terms]
5
What the issuer can and cannot do
- The issuer's guardian may pause minting. Only the timelock may unpause it.
- The controller, the collateral registry and the oracle configuration can be changed only through a public timelock. On testnet the delay is 1 hour; on mainnet it is planned to be 7 days. Queued changes are shown on the reserves page before they can run.
- No one, including the issuer, can freeze, seize, burn or move a holder's USDMD, or stop a transfer. The token contract has no function that could do so and cannot be upgraded.
6
No warranty
- The contracts, the price feed, the proof of reserves, this site and the API are provided for testing, as they are, without any warranty. They may fail, stop, be redeployed or be reset without notice, and testnet balances may be lost.
- The contracts have not yet been audited by an independent firm. An independent audit is a condition of mainnet.
7
Law and changes
- [TBD: governing law and forum]
- These terms may change. Each version will be published here; there is no effective date because this is a draft.