Uranium ore concentrate (U3O8), also known as ‘yellowcake’, is contained in mill concentrates extracted from uranium ore. Once uranium ore is mined, it is processed further at a regulated warehousing and conversion facility and converted into uranium oxide. U3O8 is an intermediate product for later processing for nuclear fuel production.

xU3O8 enables investors to own and trade U3O8 in an investment friendly and transparent manner by administering fractional ownership of physical uranium in the form of a smart contract ledger. Each xU3O8 represents a unit of ownership of U3O8 held by Archax as a custodian for investors. This novel blockchain-based ownership register leverages Tezos blockchain technology and key third parties to provide direct ownership of physical uranium efficiently and legally, allowing investors to acquire and trade U3O8.

You can buy uranium directly from the xU3O8 dApp platform. When signing up for the first time, you will need to verify your identity and submit to KYC due diligence.

There is no minimum purchase amount for U3O8.

The fees for the trading xU3O8 based trading comprise of the following: <ul><li><strong>Transaction fees</strong>: dependent on exchange requirements.</li><li><strong>U3O8 custody and administration fees</strong>: Up to 1.1% per annum (covering storage, and administration).</li></ul>

Unless you are a regulated person, you cannot request physical delivery of U3O8. Uranium mining, processing, transport, and storage operates under stringent regulations. As a result, physical delivery to any person is not feasible, unless that person is regulated by a competent national nuclear regulator. If, however, an investor opens an account at a regulated warehousing and conversion facility, a book-entry based credit transfer of U3O8 to that account is possible.

Once you have purchased U3O8 you can: <ul><li><u>Hold</u>: Keep the U3O8 for trading at a later date. Please note that daily fees are applied through the xU3O8 smart contract.</li><li><u>Trade</u>: Sell or exchange your U3O8 on a trading venue that has listed xU3O8.</li></ul> The xU3O8 dApp platform and third-party platforms that have listed xU3O8 allow you to trade 24/7 with full transparency. However, certain constraints apply to: <ul><li><u>Redeem</u>: Unless you are a regulated person, you cannot request physical delivery of U3O8.</li><li><u>Transfer</u>: xU3O8 can only be held in wallet addresses of approved trading venues (CEX) or whitelisted for use in the dApp. Trading in or out of xU3O8 must occur at a trading venue that can be accessed with the approved wallet.</li><li><u>Lend & borrow</u>: Lending and borrowing against xU3O8 are not supported yet.</li></ul>

Direct uranium ownership via the blockchain powered market infrastructure has the advantage of representing legal ownership of physically allocated uranium but does not have the limitations of minimum purchase amount, lack of transparency, restricted trading hours, and high asset management fees of other investment options. Instead, it has the divisibility, fungibility, and tradability of a digital asset.

The approved xU3O8 trading venues serve as price discovery venues. There is no formal peg to the spot price of uranium. Market makers and other arbitrageurs that are accessing the approved xU3O8 trading venues are likely to maintain broad alignment to the OTC spot market.

Being a spot commodity, there are no geographical access limits other than based on AML/CFT and/or sanctions screening. Specific exchanges which list xU3O8 may restrict as per their own risk and regulatory permissions.

To learn more, please get in contact with us on the live chat in the <a href="https://help.uranium.io" style="color: blue">Help Center</a>.