FAQ
These answers use one example throughout: 10 PAXGy, a 1-year maturity, and a market that expects a 50% yield. The rate is deliberately unrealistic so the numbers are easy to follow; real gold yields are around 2–3%, and the logic is identical. For the full maths, see How PT and YT are priced.
All values are examples, rounded. 1 PAXGy is treated as worth 1 PAXG at the start.
If my PAXGy yields 50%, what do I have after a year?
Section titled “If my PAXGy yields 50%, what do I have after a year?”About 15 PAXG: 10 PAXG of principal plus 5 PAXG of yield. You get this without Aureus, just by holding PAXGy.
Aureus separates those two pieces today: the 10 of principal become 10 PT, the 5 of future yield become 10 YT.
What is the “1.50” in the calculations?
Section titled “What is the “1.50” in the calculations?”It is 1 + the yield. 50% is 0.50, so 10 PAXG growing by 50% become 10 × (1 + 0.50) = 10 × 1.50 = 15. At 2% the factor is 1.02; at 2.80% it is 1.028.
Multiplying by the factor moves a value forward to maturity. Dividing moves it back to today.
Why is 10 PT worth 6.67 today?
Section titled “Why is 10 PT worth 6.67 today?”Because 10 PT pay exactly 10 PAXG in one year. The value today is what grows into 10 at 50%: 10 ÷ 1.50 = 6.67. Buying PT at 6.67 and holding it to maturity returns 10, a fixed 50%.
Why is 10 YT worth 3.33 today if it will collect 5?
Section titled “Why is 10 YT worth 3.33 today if it will collect 5?”Because you pay today and collect over the year, and the 5 is only an expectation.
- 10 PT + 10 YT come from 10 PAXGy worth 10 today, so 10 YT = 10 − 6.67 = 3.33.
- The same result another way: 5 ÷ 1.50 = 3.33.
Nobody pays 5 today for 5 in a year when holding PAXGy would turn that 5 into 7.50.
Who decides the 3.33?
Section titled “Who decides the 3.33?”The market. It is the price at which YT trades in the pool. Arbitrage keeps it consistent: anyone can split PAXGy into PT + YT or merge them back, so PT + YT must be worth about the same as PAXGy. If YT were priced at 5, people would split PAXGy and sell YT for a free profit until the price fell. If it were priced at 1, people would buy PT + YT and merge them until the price rose.
If I sell my 10 YT, do I sell them for 3.33 or 5?
Section titled “If I sell my 10 YT, do I sell them for 3.33 or 5?”For 3.33 in total, today. The 5 is what the YT are expected to collect over the year, and that now goes to whoever bought them.
Then why would I sell? Don’t I end up with less?
Section titled “Then why would I sell? Don’t I end up with less?”No. Right after selling you hold 3.33 PAXG plus 10 PT worth 6.67, still 10 in total. At maturity the PT return 10 PAXG.
What changes is timing and certainty:
- you have the yield now, as 3.33 PAXG you can use or reinvest;
- the amount is certain, while holding PAXGy depends on the yield that actually happens;
- you give up any yield above what the market expected.
Reasons to sell: you need liquidity without selling your gold, you want a certain result, or you think the yield will be lower than the market expects. If none of these apply, simply hold PAXGy.
I buy 10 YT for 3.33. What happens if gold yields 20%? Or 80%?
Section titled “I buy 10 YT for 3.33. What happens if gold yields 20%? Or 80%?”As a YT holder you collect the yield that 10 PAXGy actually generate during the year.
| Actual yield | 10 YT collect | You paid | Your result |
|---|---|---|---|
| 0% | 0 | 3.33 | −3.33 (−100%) |
| 20% | 2.00 | 3.33 | −1.33 (−40%) |
| 50% (as expected) | 5.00 | 3.33 | +1.67 (+50%) |
| 80% | 8.00 | 3.33 | +4.67 (+140%) |
At 20% you lose even though gold yielded something: you paid for 5 and received 2.
So is buying YT a good deal?
Section titled “So is buying YT a good deal?”Only if you think gold will yield more than the market expects.
If the yield matches the expectation, buying YT earns the same as holding PAXGy (3.33 in PAXGy at 50% also becomes 5). With 3.33 PAXG, a YT buyer gets the yield of 10 PAXGy, so YT works as leverage on gold yield, up and down.
Who wins in each scenario?
Section titled “Who wins in each scenario?”Three people start from the same position. The seller reinvests the 3.33 they receive into PAXGy, so the comparison is fair.
| Actual yield | Holds 10 PAXGy (no Aureus) | Keeps PT, sells YT, reinvests 3.33 | Bought the 10 YT for 3.33 |
|---|---|---|---|
| 0% | 10.00 | 13.33 | −3.33 |
| 20% | 12.00 | 14.00 | −1.33 |
| 50% | 15.00 | 15.00 | +1.67 |
| 80% | 18.00 | 16.00 | +4.67 |
- The seller is protected when yields come in low, and gives up part of the upside when they come in high.
- The YT buyer takes the opposite side.
- When the yield matches the expectation, everyone ends up where they would have been anyway.
How does the YT holder actually receive the yield?
Section titled “How does the YT holder actually receive the yield?”Automatically, through the vault. The PAXGy in the vault grow in value; the vault reserves the principal for PT and credits everything above it to YT holders, according to how many YT they hold and for how long. Holders can claim accrued yield at any time. When YT changes hands, the seller keeps what accrued until then and the buyer starts from zero. See How PT and YT are priced.
If I buy YT later, how do I know when it expires?
Section titled “If I buy YT later, how do I know when it expires?”Each maturity has a fixed date, the same for everyone, shown in the token name and in the app (for example YT-PAXGy-28SEP2027). Buying later means buying less time: with nine months left, less yield remains, so YT costs less. The price also moves if expectations for gold yields change. See Maturities.
If the price of gold goes up, does the YT holder get that?
Section titled “If the price of gold goes up, does the YT holder get that?”No. YT carries only the yield. PT redeems in PAXG, so a higher gold price makes the principal worth more, and that gain stays with the PT holder.
Why does the website show 0.973 and 0.027 instead of 6.67 and 3.33?
Section titled “Why does the website show 0.973 and 0.027 instead of 6.67 and 3.33?”Because the website uses a realistic 1-year rate of 2.80%. The same steps give 1 ÷ 1.028 ≈ 0.973 per PT and 1 − 0.973 ≈ 0.027 per YT, so 10 YT ≈ 0.27 PAXG. At 50% the same formulas give 0.667 and 0.333 per token. Higher expected yield means cheaper PT and more expensive YT.