AUDD Terms of Service

1. Introduction

AUDD, short for Australian Digital Dollar, is a stablecoin issued by AUDC Pty Ltd (“AUDC“) and can be used by anyone looking to benefit from the speed and efficiency of digital currencies.

AUDD is blockchain agnostic and is available on Stellar, XRP Ledger and Ethereum (ERC-20). As AUDD and the stablecoin industry grow, AUDD may become available on various other blockchains.

AUDD is operated by AUDC – an entity whose majority shareholder is Novatti Group Limited (ASX:NOV), a publicly-traded company.

This document is to be read in conjunction with any service agreements, term sheets or other similar documents.

2. Key Features of AUDD

Backed on a 1:1 Basis Against the Australian dollar

This is achieved by way of cash in bank accounts or government-backed instruments such as short-dated Treasury Notes. For every AUDD that it mints, AUDC holds $AUD1 in reserve.

Minting and Redemption Timeframes

AUDD is minted and distributed only upon confirmation of the equivalent $AUD being received in the settlement bank account. For security, AUDD is not pre-minted, minted based on credit, or minted in exchange for any other currency, whether it is fiat, crypto, or a digital asset.

AUDD is available to approved commercial partners via our platform, the AUDD Mint (“Platform“). These partners are known as “Distributors”. Distributors include our sister platform, AUDD Digital, as well as various other businesses such as exchanges, money services businesses, (MSBs), and FinTechs. If the purchase is made on the Platform, either directly through our user interface or through a request received via our Application Programming Interface (API) the minting process is initiated within 5 minutes, of the request being received, with AUDD delivered directly to the Distributor’s nominated wallet. Delivery of AUDD is subject to the processing speed of the blockchain being engaged. This process is subject to the approved limits agreed upon by both AUDC and the Distributor. Where the requested minting amount exceeds this limit, then the process shall be subject to additional wait times, including to enable security reviews in relation to the request, and the authorisation of the approved request achieving multi-signature consensus on-chain from 3 signatories. This process shall not exceed 1 business day.

Conversely, these stipulations further apply to redemptions of AUDD (burning), with the equivalent AUD credited to the Distributor’s on-platform balance no longer than 5 minutes after the AUDD has been successfully destroyed (subject to the exceptions described above).

Minting and Redemption Costs

There are no fees to Mint or Redeem AUDD on the Platform.

Authorised resellers and exchanges that offer AUDD may charge fees relevant to their respective platforms.

A fee is associated with the withdrawal of $AUD from a Distributor’s account on the Platform. The exact fee varies depending on the commercial arrangement agreed upon with the Distributor.

Assets backing AUDD are held on bare trust for AUDD holders

The assets backing AUDD will be held by AUDC on bare trust on behalf of AUDD holders. Such assets will be segregated from other assets of AUDC.

3. AUDC’s Role

Redemption

AUDC will owe an obligation to holders of AUDD to facilitate redemption of AUDD.

Provided the blockchains on which AUDD is issued are operating, AUDC will execute a valid redemption request within 5 minutes, provided AUDC receives all information it requires (including for applicable anti-money laundering laws). AUDC will pay AU$1.00 to the AUDD holder for each AUDD which is the subject of the valid Redemption request.

In accordance with AML/CTF laws in Australia, AUDC conducts necessary KYC/KYB checks on Distributors that Mint or Redeem AUDD via the Platform.

Suspension of Services

AUDC reserves the right to suspend services related to AUDD for various reasons, including (but not limited to) undertaking maintenance on the Platform and addressing misuse of the Platform or of AUDD.

Neither AUDC nor Novatti Group guarantee that the Platform will be available 100% of the time. Technical difficulties may prevent the free and unencumbered use of the Platform.

4. Obligations of AUDD Holders

AUDD is provided for legitimate purposes and must not be used for criminal activity. This includes but is not limited to, terrorism financing, money laundering, human trafficking, and illegal gambling.

In addition, AUDD holders must agree to the terms and conditions of the AUDD Digital Platform (here). This includes the requirement to act honestly when using the Platform and AUDD. Equally, trusted Partners, including Distributors, that resell AUDD will have equivalent terms with which AUDD holders must agree if they Mint or Redeem AUDD from partner platforms.