Gold delta accounting

PAXGy is non-rebasing. The token balance can remain constant while its exchange rate into PAXG changes. Aureus must therefore account for both the LP inventory and the current PAXGy/PAXG rate to estimate gold exposure.

For illustration only:

50 PAXGy × 1.1500 PAXG/PAXGy = 57.50 oz gold exposure
50 PAXGy × 1.1700 PAXG/PAXGy = 58.50 oz gold exposure

In this example, the estimated exposure increased by 1.00 oz. The hedge target would be recalculated to reflect the change. These values are examples, not current exchange rates or a performance claim.

The estimate can diverge from actual exposure because of changing pool balances, oracle inputs, basis, execution delay, fees, slippage and market moves. An approximate zero target does not mean every risk has been hedged.