> For the complete documentation index, see [llms.txt](https://vnx.gitbook.io/vnx-global/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vnx.gitbook.io/vnx-global/glossary.md).

# Glossary

*Definitions of the regulatory, custody, and product terms used across VNX documentation.*

## A

**AML/ATF (Anti-Money Laundering / Anti-Terrorism Financing).** A risk-based programme of customer due diligence, transaction monitoring, sanctions screening, and reporting designed to detect and prevent money laundering and terrorist financing.

**Arranger model.** Operational model in which VNX arranges crypto-fiat conversion through regulated third-party providers rather than acting as principal counterparty. See Onramp/Offramp.

**Audit, Risk and Compliance Committee.** A Board committee that oversees financial integrity, compliance, auditor performance, internal audit, risk policies, and aggregate risk exposures.

## B

**BCB (Bermuda Commercial Bank).** The banking custodian for segregated customer fiat accounts.

**BMA (Bermuda Monetary Authority).** Bermuda's financial-services regulator and the licensing authority for VNX's Class M licence under DABA.

**Business Continuity Policy.** VNX's policy aiming to "resume necessary operations within approximately 24 hours" following a major risk event, with a 99.5% uptime target.

## C

**Class M licence.** The DABA digital-assets business licence currently held by VNX Global Ltd, authorising VNX to conduct digital-asset exchange, payment services, and digital-asset service vendor activities in Bermuda.

**Cold storage.** Offline custody of digital assets. VNX plans to establish a cold-storage facility within 12 months of licensure if client assets exceed USD 200,000.

**CQS (Credit Quality Step).** Rating-based eligibility classification used in VNX's investment policy: majority CQS 1, CQS 2 capped at 20%, no investments below investment grade (CQS 3).

## D

**DABA (Digital Asset Business Act).** Bermuda's regulatory framework for digital-asset businesses; VNX operates under DABA section 20 notification rules.

**Depegging threshold.** Stress thresholds applied to stablecoin price deviation: deviation greater than 0.5% lasting more than 24 hours triggers investigation; deviation greater than 1% triggers public disclosure and BMA notification.

## E

**EDD (Enhanced Due Diligence).** Heightened compliance review applied where standard checks signal additional risk; tokens may be held pending EDD.

**EURC.** A euro-pegged stablecoin issued by Circle, supported on the VNX FX Platform for stablecoin-to-stablecoin conversion.

## F

**Fiduciary bank.** The bank holding stablecoin reserves under fiduciary arrangements.

**FRT (Fiat Referenced Tokens).** A token category covering VCHF, VGBP and similar fiat-pegged stablecoins. Currently generated by VNX Commodities AG; to be novated to VNX Global Ltd under its Class M licence.

## H

**HSM (Hardware Security Module).** FIPS 140-2 certified hardware planned for transaction signing within 12 months of licensure.

## K

**KYB / KYC (Know Your Business / Know Your Customer).** Onboarding due-diligence procedures applied to organisational and individual customers, respectively.

## M

**MoN multi-confirmation (M-of-N).** Multi-signature standard with a minimum of two signatories required for quorum on minting and burning.

**MPC (Multi-Party Computation).** A class of cryptographic key-management techniques that distribute signing capability across multiple parties without reconstructing a full private key.

## O

**Omnibus wallet.** A pooled wallet that holds digital assets for multiple customers in a single address with internal sub-ledgering. VNX uses dedicated platform crypto wallets for customer funds and a transitional wallet for inbound flows.

**OpenZeppelin.** The audited Solidity contract library used for EVM stablecoin deployments.

## P

**PIPA (Personal Information Protection Act).** Bermuda's privacy law against which VNX's privacy policy is aligned.

**POCR.** Procedure on the Code of Regulation, an internal compliance procedure maintained by the Compliance Officer.

**Prop trade.** Proprietary-trading mode in which VNX fills a customer order from its own liquidity pool rather than minting new tokens.

## R

**Risk Management Officer (RMO).** The risk-function role responsible for executing the risk programme.

**Ring-fencing.** Legal isolation of reserve assets so that "neither the Company including its affiliates, nor creditors can claim the assets".

## S

**Safeguard Reserve Account.** The dedicated, ring-fenced account holding customer fiat assets, segregated from VNX operational accounts.

**Senior Representative.** The named individual responsible for BMA notifications under DABA section 20 (insolvency likelihood, material breaches, cyber incidents, business cessation).

**SPL (Solana Token Program).** The Solana standard used for VNX Solana deployments.

## T

**T+0 cash buffer.** The 10% of total reserves held in immediately accessible fiat cash to guarantee immediate redemption.

**Travel Rule.** FATF requirement to exchange originator and beneficiary information on virtual-asset transfers above thresholds; applied by VNX on stablecoin issuance and redemption.

## U

**USDC.** A US-dollar-pegged stablecoin issued by Circle, supported on the VNX FX Platform for stablecoin-to-stablecoin conversion.

## V

**VCHF.** VNX's Swiss Franc stablecoin, redeemable 1:1 against CHF reserves.

**VGBP.** VNX's British Pound stablecoin, pegged 1:1 to GBP, against GBP reserves.