# Conditional Claim NFTs

Each allocated Global Gold Token — including Global Gold Bars, Global Gold Coins, and other council-approved metal forms — is represented on-chain by a Conditional Claim NFT.<br>

The Conditional Claim NFT functions as a digital ownership-claim representation for a specific, serialized physical asset held in an approved vault.

***

#### What the Conditional Claim NFT Represents<br>

A Conditional Claim NFT represents:

* A legally structured, conditional claim pathway to acquire legal title to a specific physical metal asset (bar, coin, or approved bullion form)
* A cryptographic digital twin of the asset’s physical, legal, and custodial attributes
* A transferable claim representation tied to a single, identifiable piece of metal

Claims are asset-level and non-pooled, with defined legal and operational pathways for validation and execution.

***

#### Why the Claim Is “Conditional”

The claim encoded in the NFT is conditional because legal title transfer must satisfy jurisdictional and vault-level requirements before completion.

These conditions typically include:

* Jurisdiction-specific compliance checks
* Vault-level KYC / AML review
* Confirmation of eligibility for title transfer under local law

Until these conditions are satisfied:

* The NFT represents a claim to request title transfer, not instantaneous delivery
* Tokens used in a claim flow are escrowed, not burned
* No title transfer occurs prematurely

This structure preserves:

* Regulatory compliance
* Legal enforceability
* Non-custodial protocol design

***

#### What the Conditional Claim NFT Is Not

A Conditional Claim NFT is not:

* A custodial receipt
* A balance-sheet liability
* A pooled or fractional claim
* An IOU issued by Global Gold Protocol LLC
* An unconditional or discretionary promise of delivery<br>

The NFT does not place custody, discretion, or execution authority in the protocol.

***

#### Separation of Roles

The Conditional Claim NFT exists to standardize ownership and settlement, while keeping operational responsibilities cleanly separated:

* Vaults retain physical custody and execute delivery
* Trusts / collateral agents (where applicable) hold title during collateralization
* The protocol defines and enforces the rules
* Users remain the economic owners of the metal<br>

This separation is what allows Global Gold Tokens to support:

* Asset-level ownership
* On-chain transferability
* Jurisdiction-compliant settlement
* Institutional-grade auditability=

— without introducing custody, issuer risk, or discretionary control.

***

#### Why This Matters

Conditional Claim NFTs are the core primitive that allows real, physical precious metals to exist on-chain without counterparty risk.

They do not abstract ownership.

They encode it.<br>

They are the foundation that makes decentralized, non-custodial gold and silver possible at global scale.