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.