Swissgrams Gold — version comparison

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Update SGG.md

06 Oct 2026, 14:40 UTC · PaoloDiStef · 42cb3ce · assessments/draft/SGG.md

Publish SGG.md

06 Nov 2026, 16:52 UTC · PaoloDiStef · 9930245 · assessments/published/SGG.md

Structured data (13 changes)

Field	Before	After
Risk parameters
risk_parameters.liquidation_price	3000	—
risk_parameters.maturity	null	1 year
risk_parameters.minimum_collateral	2.5	—
Risk scores
risk_scores.market_risk	12.00%	12.52%
risk_scores.tail_risks.governance_risks[0].name	Swiss-law issuer/admin-control risk	Admin-Control
risk_scores.tail_risks.governance_risks[0].probability	Negligible	Very Low
risk_scores.tail_risks.governance_risks[0].severity	Moderate	Critical
risk_scores.tail_risks.governance_risks[0].compensation	0.00%	0.50%
risk_scores.tail_risks.liquidity_risks[0].name	Secondary Market Liquidity & Physical Redemption	—
risk_scores.tail_risks.liquidity_risks[0].probability	Low	—
risk_scores.tail_risks.liquidity_risks[0].severity	Severe	—
risk_scores.tail_risks.liquidity_risks[0].compensation	0.50%	—
General
assessment_date	2026-10-06	2026-11-06

Narrative (markdown)

assessments/{draft/SGG.md@42cb3ce → published/SGG.md@9930245} RENAMED Viewed

@@ -2,40 +2,44 @@
 ## Summary
-SGG is a tokenized gold product issued by Swissgrams AG in Zug, Switzerland. Each SGG represents one troy ounce of gold content in physical sovereign coins stored in Switzerland. Eligible reserve coins include 1 oz American Gold Eagles, Maple Leafs, Vienna Philharmonics, Britannias and Kangaroos. Tokens are only released into circulation against a matching deposit of coins into the reserve.
-The underlying exposure is high-quality and relatively low-volatility. Compared with other tokenized gold products, SGG has a strong Swiss-law structure and a direct physical redemption path from a single ounce. The main risks are issuer/custody execution, smart-contract/admin functionality, and limited initial liquidity.
-The proposed 25% retained reserve addresses ordinary gold-price volatility and liquidation execution risk. The proposed 250,000 ZCHF global minting limit and 2.0% target interest rate are the main safeguards against the wrapper-specific tail risks.
 ## Free Float
 Classification: Sufficient
-SGG is freely transferable as an ERC-20 token and has no allowlist, so anyone can hold it and participate in Frankencoin challenges and auctions. SGG can also be physically redeemed from a single ounce through Swissgrams and its first dealer partner, pro aurum, according to the Token Terms.
-The current on-chain supply is still small, but SGG has a documented primary-market minting and redemption mechanism. Tokens are released only against matching physical coins deposited into the reserve, and redeemed tokens can be exchanged for whole coins. This creates a credible expansion and exit path, although it depends on Swissgrams, dealer operations, and the availability of eligible coins.
-The proposed 250,000 ZCHF global minting limit is reasonable as an initial cap because it limits Frankencoin's exposure while the SGG market develops. At a 3,000 ZCHF liquidation price, the full limit would require roughly 84 SGG of collateral exposure. This is modest in relation to the physical gold market, but should remain linked to the actual circulating SGG supply and available redemption/minting capacity. If supply and liquidity do not expand, the limit should not be increased.
 ## Public Information
 Classification: Strong
-Public information is strong because SGG references a highly liquid and observable gold market. The underlying collateral consists of standard 1 oz investment gold coins, and Swissgrams publishes daily inventory reporting for the reserve.
-Challengers should therefore be able to estimate likely auction outcomes by referencing the gold price, applying any redemption and liquidity discount, and accounting for the stated redemption process, minting/redemption fees, VAT, shipping, insurance, and timing frictions.
 ## Market Risk
 99%-VaR, 96h close-to-close: 8.46%
-Maximum Drawdown, 96h close-to-close: 12.00%
-To account for ordinary gold-price volatility over 96h, the 2% challenger reward, and applying an additional haircut for liquidation costs and potential time delays, a 25% minter reserve appears appropriate.
-The proposed liquidation price of 3,000 ZCHF per SGG is conservative relative to the current value of one troy ounce of gold and leaves a substantial buffer for liquidation execution.
 ## Tail Risks
 ### Counterparty Risk: Swissgrams AG
@@ -46,11 +50,11 @@
 Compensation: 1.00%
-Assessment: SGG is a tokenized wrapper whose value depends on Swissgrams AG as issuer and administrator, Helveticor AG as vaulting provider, the integrity of the reserve, and the redemption process. The co-ownership structure materially reduces issuer insolvency risk, because holders are not merely unsecured creditors of Swissgrams AG. However, operational execution still matters: reserve management, inventory reporting, redemption processing, dealer availability, and custody operations must continue to function as expected.
-A failure in any of these components could impair the token relative to the underlying gold price, even if the legal structure is stronger than many issuer-claim models. A 1.00% compensation is therefore assigned for issuer, custody, and redemption dependency.
-### Smart Contract Risk: Smart-Contract Exploit
 Likelihood: Very Low
@@ -58,36 +62,20 @@
 Compensation: 0.50%
-Assessment: SGG is an ERC-20 token built on CMTA's audited CMTAT Light framework. The contract is upgradeable through Swissgrams' multisig and includes administrative functionality, including the ability to freeze tokens where sanctions law or a competent authority requires it.
-These controls are common for regulated RWA tokens and are not unusual in this category. However, they introduce dependency on correct administration, secure key management, predictable upgrade behaviour, and the absence of contract-level issues. A contract-level exploit, malicious upgrade, compromised admin key, or implementation error could impair transferability, settlement, or liquidation proceeds. A 0.50% compensation is assigned for smart-contract risk.
-### Governance Risk: Swiss-law issuer/admin-control risk
-Likelihood: Negligible
-Compensation: 0.00%
-Assessment: SGG is issued by a Swiss company, governed by Swiss law, backed by gold stored in Switzerland, and structured as a co-ownership title in the physical coin reserve. This materially reduces the governance and admin-control risk compared with structures where the issuer, custodian, regulator, and legal claim sit across different jurisdictions.
-The contract and Token Terms allow freezing where sanctions law or a competent authority requires it. This is a residual control feature, but it is narrow and embedded in a Swiss legal and operational framework. Given the Swiss issuer, Swiss custody, Swiss-law structure, and co-ownership claim, no separate governance-risk premium is assigned.
-### Liquidity Risk: Secondary Market Liquidity & Physical Redemption
-Likelihood: Low
-Severity: Severe
 Compensation: 0.50%
-Assessment: SGG is currently an early-stage tokenized gold product with limited secondary-market depth. In a liquidation, challengers may struggle to acquire or recycle sufficient SGG quickly if on-chain liquidity is thin or if primary minting/redemption requires operational coordination.
-The exit path is stronger than for many tokenized gold products because SGG can be redeemed from a single ounce. However, physical redemption still involves process risk, timing frictions, minting/redemption fees, VAT where applicable, and third-party costs such as shipping and insurance. Arbitrageurs would therefore likely apply a haircut for delayed exit and redemption uncertainty. A 0.50% compensation is assigned for this risk.
 ## Conclusion
-The proposed retained reserve of 25% is appropriate relative to expected market volatility of the underlying gold exposure and leaves a substantial buffer for liquidation execution. It should not be interpreted as full protection against issuer, custody, redemption, smart-contract, or liquidity tail risks. Those risks are addressed primarily through the proposed 250,000 ZCHF global minting limit and the 2.0% target interest rate.
-The target interest rate of 2.0% is justified by the selected risk premia: 1.00% for counterparty risk, 0.50% for smart-contract risk, 0.00% for governance risk, and 0.50% for liquidity risk.
-The proposed 250,000 ZCHF global minting limit is the primary safeguard as long as the free float and secondary-market liquidity of SGG remain limited. The Swiss-law structure, Swiss custody, daily inventory reporting, and one-ounce physical redemption path make SGG a credible collateral candidate, provided onboarding starts with a conservative initial limit.

 ## Summary
+SGG is a tokenized gold product issued by Swissgrams AG in Zug, Switzerland. Each SGG represents a proportional co-ownership interest in a reserve of physical sovereign coins stored in Switzerland. Eligible reserve coins include 1 oz American Gold Eagles, Maple Leafs, Vienna Philharmonics, Britannias and Kangaroos. Tokens are released into circulation only against matching coins deposited into the reserve.
+The underlying exposure is high-quality and relatively low-volatility. SGG has a strong Swiss-law structure and a direct physical-redemption path from a single ounce. The 25% retained reserve addresses ordinary gold-price volatility and liquidation execution risk. The main residual risks are Swissgrams AG’s custody and redemption operations, a failure of the token’s smart-contract stack, and central administrative controls.
+## Asset Overview
+SGG is a six-decimal ERC-20 token. Under the Token Terms, each token represents a proportional co-ownership interest in the eligible-coin reserve under Swiss law. The Ethereum token is the register and proof of that co-ownership interest. Holders waive partition and dissolution rights, but retain a redemption claim for their proportional reserve share. The Terms state that holders have a segregation claim in the event of issuer insolvency.
+Swissgrams AG is the issuer and contractual custodian. It may appoint and replace Swiss sub-custodians. The white paper identifies Helveticor AG in Zurich as the high-security vaulting and redemption-handling provider.
+SGG can be redeemed as whole eligible one-ounce coins. Redemption requires at least 72 hours’ notice, KYC and lawful-acquisition checks. The issuer selects the coin type unless otherwise agreed. The published retail process states a 0.5% redemption fee plus shipping. Swiss redemptions below CHF 20,000 can use the redemption widget with insured Planzer delivery or collection at Pro Aurum in Kilchberg. International and higher-value redemptions require a bespoke offer.
 ## Free Float
 Classification: Sufficient
+SGG can be purchased through Mt Pelerin, or minted and redeemed from a single ounce through Swissgrams and its first dealer partner, Pro Aurum.
+The on-chain supply is currently still small, but SGG has a documented primary issuance and redemption mechanism. Tokens are released only against matching physical coins deposited into the reserve, and tokens can be redeemed for whole eligible coins. This provides a credible acquisition and exit path, although challengers would primarily depend on Mt Pelerin availability as the primary venue for secondary market liquidity.
+The 250,000 ZCHF global minting limit is appropriate while supply and liquidity remain limited.
 ## Public Information
 Classification: Strong
+SGG references a highly liquid and observable gold market. The underlying collateral consists of standard one-ounce investment coins, and Swissgrams publishes daily inventory reporting for the reserve.
+Challengers can estimate likely auction outcomes from the gold price, applying the 0.5% redemption fee, shipping, insurance, VAT where applicable, and the timing and operational requirements of physical redemption.
 ## Market Risk
 99%-VaR, 96h close-to-close: 8.46%
+Worst 48h close-to-close drawdown observed: 12.52%
+The 25% retained reserve is above the observed gold-market decline and provides an additional buffer for the challenger reward as well as redemption, delivery and auction execution costs.
 ## Tail Risks
 ### Counterparty Risk: Swissgrams AG
 Compensation: 1.00%
+SGG depends on Swissgrams AG to administer the reserve, custody arrangements, inventory reporting and redemption process. It also depends on Helveticor AG or a replacement Swiss sub-custodian for vaulting and redemption operations. A failure in custody, inventory management, dealer or transport operations or redemption execution could impair the token relative to the underlying gold price.
+The co-ownership structure and stated segregation claim materially reduce issuer-insolvency exposure. They do however not remove the operational dependency on Swissgrams AG, its appointed sub-custodian and the physical redemption process.
+### Smart-Contract Risk: Smart-Contract Exploit
 Likelihood: Very Low
 Compensation: 0.50%
+SGG is an ERC-20 token implemented through an EIP-1967 TransparentUpgradeableProxy and the CMTATUpgradeableLight implementation. A technical defect, exploit, proxy or storage failure could impair balances, transfers, minting, burning or the token record used to evidence the associated co-ownership interest.
+### Governance Risk: Admin-Control
+Likelihood: Very Low
+Severity: Critical
 Compensation: 0.50%
+A Safe controlled through Swissgrams’ multisignature governance process holds the default-admin role and controls the ProxyAdmin. It can mint and burn, pause transfers, freeze addresses, grant and revoke roles, deactivate the contract and replace the proxy implementation.
+A frozen address cannot transfer SGG. The default admin can then force-burn the frozen balance. The ProxyAdmin can also replace the token logic through an upgrade. The Token Terms describe freezing as a sanctions or competent-authority measure and state that the issuer otherwise has no confiscation or appropriation right. The on-chain controls can nevertheless make pledged SGG untransferable or destroy its on-chain balance.
 ## Conclusion
+The 25% retained reserve is above the 12.52% worst 48h close-to-close drawdown observed for the underlying gold market. It also provides a buffer for the 0.5% redemption fee, delivery, insurance and auction execution costs. The 2.00% effective interest rate compensates Swissgrams AG counterparty risk, smart-contract exploit risk and admin-control risk. The 250,000 ZCHF global minting limit restricts the maximum withdrawable amount to 187,500 ZCHF and contains exposure to the Medium counterparty risk. SGG’s Sufficient Free Float supports a 48 hour auction duration, and a maturity of 1 year is appropriate before reassessment.

assessments/{draft/SGG.md@42cb3ce → published/SGG.md@9930245} RENAMED Viewed

@@ -2,40 +2,44 @@
 ## Summary
-SGG is a tokenized gold product issued by Swissgrams AG in Zug, Switzerland. Each SGG represents one troy ounce of gold content in physical sovereign coins stored in Switzerland. Eligible reserve coins include 1 oz American Gold Eagles, Maple Leafs, Vienna Philharmonics, Britannias and Kangaroos. Tokens are only released into circulation against a matching deposit of coins into the reserve.
+SGG is a tokenized gold product issued by Swissgrams AG in Zug, Switzerland. Each SGG represents a proportional co-ownership interest in a reserve of physical sovereign coins stored in Switzerland. Eligible reserve coins include 1 oz American Gold Eagles, Maple Leafs, Vienna Philharmonics, Britannias and Kangaroos. Tokens are released into circulation only against matching coins deposited into the reserve.
-The underlying exposure is high-quality and relatively low-volatility. Compared with other tokenized gold products, SGG has a strong Swiss-law structure and a direct physical redemption path from a single ounce. The main risks are issuer/custody execution, smart-contract/admin functionality, and limited initial liquidity.
+The underlying exposure is high-quality and relatively low-volatility. SGG has a strong Swiss-law structure and a direct physical-redemption path from a single ounce. The 25% retained reserve addresses ordinary gold-price volatility and liquidation execution risk. The main residual risks are Swissgrams AG’s custody and redemption operations, a failure of the token’s smart-contract stack, and central administrative controls.
-The proposed 25% retained reserve addresses ordinary gold-price volatility and liquidation execution risk. The proposed 250,000 ZCHF global minting limit and 2.0% target interest rate are the main safeguards against the wrapper-specific tail risks.
+## Asset Overview
+SGG is a six-decimal ERC-20 token. Under the Token Terms, each token represents a proportional co-ownership interest in the eligible-coin reserve under Swiss law. The Ethereum token is the register and proof of that co-ownership interest. Holders waive partition and dissolution rights, but retain a redemption claim for their proportional reserve share. The Terms state that holders have a segregation claim in the event of issuer insolvency.
+Swissgrams AG is the issuer and contractual custodian. It may appoint and replace Swiss sub-custodians. The white paper identifies Helveticor AG in Zurich as the high-security vaulting and redemption-handling provider.
+SGG can be redeemed as whole eligible one-ounce coins. Redemption requires at least 72 hours’ notice, KYC and lawful-acquisition checks. The issuer selects the coin type unless otherwise agreed. The published retail process states a 0.5% redemption fee plus shipping. Swiss redemptions below CHF 20,000 can use the redemption widget with insured Planzer delivery or collection at Pro Aurum in Kilchberg. International and higher-value redemptions require a bespoke offer.
 ## Free Float
 Classification: Sufficient
-SGG is freely transferable as an ERC-20 token and has no allowlist, so anyone can hold it and participate in Frankencoin challenges and auctions. SGG can also be physically redeemed from a single ounce through Swissgrams and its first dealer partner, pro aurum, according to the Token Terms.
+SGG can be purchased through Mt Pelerin, or minted and redeemed from a single ounce through Swissgrams and its first dealer partner, Pro Aurum.
-The current on-chain supply is still small, but SGG has a documented primary-market minting and redemption mechanism. Tokens are released only against matching physical coins deposited into the reserve, and redeemed tokens can be exchanged for whole coins. This creates a credible expansion and exit path, although it depends on Swissgrams, dealer operations, and the availability of eligible coins.
+The on-chain supply is currently still small, but SGG has a documented primary issuance and redemption mechanism. Tokens are released only against matching physical coins deposited into the reserve, and tokens can be redeemed for whole eligible coins. This provides a credible acquisition and exit path, although challengers would primarily depend on Mt Pelerin availability as the primary venue for secondary market liquidity.
-The proposed 250,000 ZCHF global minting limit is reasonable as an initial cap because it limits Frankencoin's exposure while the SGG market develops. At a 3,000 ZCHF liquidation price, the full limit would require roughly 84 SGG of collateral exposure. This is modest in relation to the physical gold market, but should remain linked to the actual circulating SGG supply and available redemption/minting capacity. If supply and liquidity do not expand, the limit should not be increased.
+The 250,000 ZCHF global minting limit is appropriate while supply and liquidity remain limited.
 ## Public Information
 Classification: Strong
-Public information is strong because SGG references a highly liquid and observable gold market. The underlying collateral consists of standard 1 oz investment gold coins, and Swissgrams publishes daily inventory reporting for the reserve.
+SGG references a highly liquid and observable gold market. The underlying collateral consists of standard one-ounce investment coins, and Swissgrams publishes daily inventory reporting for the reserve.
-Challengers should therefore be able to estimate likely auction outcomes by referencing the gold price, applying any redemption and liquidity discount, and accounting for the stated redemption process, minting/redemption fees, VAT, shipping, insurance, and timing frictions.
+Challengers can estimate likely auction outcomes from the gold price, applying the 0.5% redemption fee, shipping, insurance, VAT where applicable, and the timing and operational requirements of physical redemption.
 ## Market Risk
 99%-VaR, 96h close-to-close: 8.46%
-Maximum Drawdown, 96h close-to-close: 12.00%
+Worst 48h close-to-close drawdown observed: 12.52%
-To account for ordinary gold-price volatility over 96h, the 2% challenger reward, and applying an additional haircut for liquidation costs and potential time delays, a 25% minter reserve appears appropriate.
+The 25% retained reserve is above the observed gold-market decline and provides an additional buffer for the challenger reward as well as redemption, delivery and auction execution costs.
-The proposed liquidation price of 3,000 ZCHF per SGG is conservative relative to the current value of one troy ounce of gold and leaves a substantial buffer for liquidation execution.
 ## Tail Risks
 ### Counterparty Risk: Swissgrams AG
@@ -46,11 +50,11 @@
 Compensation: 1.00%
-Assessment: SGG is a tokenized wrapper whose value depends on Swissgrams AG as issuer and administrator, Helveticor AG as vaulting provider, the integrity of the reserve, and the redemption process. The co-ownership structure materially reduces issuer insolvency risk, because holders are not merely unsecured creditors of Swissgrams AG. However, operational execution still matters: reserve management, inventory reporting, redemption processing, dealer availability, and custody operations must continue to function as expected.
+SGG depends on Swissgrams AG to administer the reserve, custody arrangements, inventory reporting and redemption process. It also depends on Helveticor AG or a replacement Swiss sub-custodian for vaulting and redemption operations. A failure in custody, inventory management, dealer or transport operations or redemption execution could impair the token relative to the underlying gold price.
-A failure in any of these components could impair the token relative to the underlying gold price, even if the legal structure is stronger than many issuer-claim models. A 1.00% compensation is therefore assigned for issuer, custody, and redemption dependency.
+The co-ownership structure and stated segregation claim materially reduce issuer-insolvency exposure. They do however not remove the operational dependency on Swissgrams AG, its appointed sub-custodian and the physical redemption process.
-### Smart Contract Risk: Smart-Contract Exploit
+### Smart-Contract Risk: Smart-Contract Exploit
 Likelihood: Very Low
@@ -58,36 +62,20 @@
 Compensation: 0.50%
-Assessment: SGG is an ERC-20 token built on CMTA's audited CMTAT Light framework. The contract is upgradeable through Swissgrams' multisig and includes administrative functionality, including the ability to freeze tokens where sanctions law or a competent authority requires it.
+SGG is an ERC-20 token implemented through an EIP-1967 TransparentUpgradeableProxy and the CMTATUpgradeableLight implementation. A technical defect, exploit, proxy or storage failure could impair balances, transfers, minting, burning or the token record used to evidence the associated co-ownership interest.
-These controls are common for regulated RWA tokens and are not unusual in this category. However, they introduce dependency on correct administration, secure key management, predictable upgrade behaviour, and the absence of contract-level issues. A contract-level exploit, malicious upgrade, compromised admin key, or implementation error could impair transferability, settlement, or liquidation proceeds. A 0.50% compensation is assigned for smart-contract risk.
+### Governance Risk: Admin-Control
-### Governance Risk: Swiss-law issuer/admin-control risk
+Likelihood: Very Low
-Likelihood: Negligible
+Severity: Critical
-Compensation: 0.00%
-Assessment: SGG is issued by a Swiss company, governed by Swiss law, backed by gold stored in Switzerland, and structured as a co-ownership title in the physical coin reserve. This materially reduces the governance and admin-control risk compared with structures where the issuer, custodian, regulator, and legal claim sit across different jurisdictions.
-The contract and Token Terms allow freezing where sanctions law or a competent authority requires it. This is a residual control feature, but it is narrow and embedded in a Swiss legal and operational framework. Given the Swiss issuer, Swiss custody, Swiss-law structure, and co-ownership claim, no separate governance-risk premium is assigned.
-### Liquidity Risk: Secondary Market Liquidity & Physical Redemption
-Likelihood: Low
-Severity: Severe
 Compensation: 0.50%
-Assessment: SGG is currently an early-stage tokenized gold product with limited secondary-market depth. In a liquidation, challengers may struggle to acquire or recycle sufficient SGG quickly if on-chain liquidity is thin or if primary minting/redemption requires operational coordination.
+A Safe controlled through Swissgrams’ multisignature governance process holds the default-admin role and controls the ProxyAdmin. It can mint and burn, pause transfers, freeze addresses, grant and revoke roles, deactivate the contract and replace the proxy implementation.
-The exit path is stronger than for many tokenized gold products because SGG can be redeemed from a single ounce. However, physical redemption still involves process risk, timing frictions, minting/redemption fees, VAT where applicable, and third-party costs such as shipping and insurance. Arbitrageurs would therefore likely apply a haircut for delayed exit and redemption uncertainty. A 0.50% compensation is assigned for this risk.
+A frozen address cannot transfer SGG. The default admin can then force-burn the frozen balance. The ProxyAdmin can also replace the token logic through an upgrade. The Token Terms describe freezing as a sanctions or competent-authority measure and state that the issuer otherwise has no confiscation or appropriation right. The on-chain controls can nevertheless make pledged SGG untransferable or destroy its on-chain balance.
 ## Conclusion
-The proposed retained reserve of 25% is appropriate relative to expected market volatility of the underlying gold exposure and leaves a substantial buffer for liquidation execution. It should not be interpreted as full protection against issuer, custody, redemption, smart-contract, or liquidity tail risks. Those risks are addressed primarily through the proposed 250,000 ZCHF global minting limit and the 2.0% target interest rate.
-The target interest rate of 2.0% is justified by the selected risk premia: 1.00% for counterparty risk, 0.50% for smart-contract risk, 0.00% for governance risk, and 0.50% for liquidity risk.
-The proposed 250,000 ZCHF global minting limit is the primary safeguard as long as the free float and secondary-market liquidity of SGG remain limited. The Swiss-law structure, Swiss custody, daily inventory reporting, and one-ounce physical redemption path make SGG a credible collateral candidate, provided onboarding starts with a conservative initial limit.
+The 25% retained reserve is above the 12.52% worst 48h close-to-close drawdown observed for the underlying gold market. It also provides a buffer for the 0.5% redemption fee, delivery, insurance and auction execution costs. The 2.00% effective interest rate compensates Swissgrams AG counterparty risk, smart-contract exploit risk and admin-control risk. The 250,000 ZCHF global minting limit restricts the maximum withdrawable amount to 187,500 ZCHF and contains exposure to the Medium counterparty risk. SGG’s Sufficient Free Float supports a 48 hour auction duration, and a maturity of 1 year is appropriate before reassessment.