SQOOT Pure — Redemption (Cash & Delivery) Spec

Owner: Jay (Founder) · Entity: Fortress Gold Inc. dba SQOOT Pure · Date: June 3, 2026 Purpose: Define how SQOOT can support a GoldWise-style cash redemption feature while keeping the experience simple and Starbucks-like.

Decision (June 3, 2026): SQOOT will not promise “no selling.” Customers will expect GoldWise-style liquidity, so the product offers Redeem = two paths: for delivery OR to cash. The earlier “no sell-back in Phase 1” framing is superseded. Cash redemption still requires counsel, banking, and compliance sign-off plus the backend (quotes, sell-back orders, settlement, payout, dealer buyback/liquidity, AML, visible fee/spread) before it goes live — but it is in-scope, not deferred.

1. Key clarification

GoldWise says “sell” because the customer is converting vaulted metal back into cash/e-money. SQOOT can use friendlier customer-facing language — Redeem, Redeem to cash, Redeem for delivery — but internally these are two different workflows:

Redeem for delivery — vaulted gold becomes physical, shipped gold.
Redeem to cash — vaulted gold is sold back / liquidated and the customer receives money.

These are not the same feature.

2. Recommended UX language

Use “Redeem” as the main word, then ask what the customer wants:

How would you like to redeem?
1. Redeem for delivery
   Get eligible gold shipped to you.
2. Redeem to cash
   Sell vaulted gold at today's redemption price and receive funds after settlement.

Avoid saying: “Guaranteed cash out” · “Instant payout” · “Investment return” · “No fee” · “Same as spot.”

3. Redeem-to-cash flow

User opens Vault.
Taps Redeem.
Selects Redeem to cash.
SQOOT shows available gold balance.
User chooses amount: sell all · sell by dollar amount · sell by ounce amount.
SQOOT creates a redemption quote: current market price · SQOOT redemption spread/fee · net cash proceeds · quote expiration timer.
User confirms.
SQOOT debits gold balance.
SQOOT liquidates or offsets the metal position.
Net proceeds move to wallet or bank after settlement.
User receives a receipt.

4. How fees are built in

GoldWise-like platforms make money through: buy spread · sell spread · explicit transaction fees · FX fee (if applicable) · storage/custody fee · withdrawal fee.

SQOOT keeps it simple:

Buy price            = spot price + SQOOT buy spread
Redeem-to-cash price = spot price − SQOOT redemption spread
Delivery redemption  = shipping + insurance + fulfillment fee

Example:

Gold spot (live ~Jun 2026):   $4,500.00 / oz
SQOOT cash redemption spread: 1.5%
Customer redeem price:        $4,432.50 / oz
Customer sells 0.03 oz:
  Gross value (at spot):      $135.00
  Net cash proceeds:          $132.98

(Use the live spot feed — do not hard-code; gold ~$4,500/oz as of June 3, 2026.)

UI shows plainly: Market price · Redemption spread · Net cash proceeds · Funds available after settlement.

5. Backend requirements

New entities: redemption_quotes · redemption_orders · redemption_order_lines · settlement_batches · payout_methods · payout_requests · liquidity_trades · redemption_receipts.

Required checks before executing: - User KYC approved. - User owns enough vaulted gold. - Gold is not pending claim, pending settlement, or frozen. - Quote not expired. - Minimum redemption amount met. - Payout method verified. - AML review clear.

6. Ledger movement

Before:  User holding: 0.0500 oz
Redeem:  User sells:   0.0300 oz
After:   User holding: 0.0200 oz
         Cash proceeds: pending settlement

Every redemption writes immutable audit events: quote created → quote accepted → gold debited → sale/liquidation executed → cash proceeds calculated → settlement pending → payout initiated → payout completed.

7. Operational requirement — liquidation path

SQOOT must have one of these:

Option A — Supplier buyback (sell metal back through Dillon Gage / another dealer) - Pros: clear physical-metal model; connects to inventory. - Cons: dealer pricing, minimums, settlement timing, and API support must be confirmed.

Option B — Internal netting (match redemptions against new buys) - Pros: efficient as volume grows. - Cons: strict controls required; must never allow under-backed balances.

Option C — Market liquidity provider (execute with a metals LP) - Pros: more scalable trading model. - Cons: more complex compliance, settlement, and partner integration.

(Recommended start: Option A — it mirrors the inventory/Dillon Gage model already specced. Internal netting (B) layered in as volume grows.)

8. User promise

You can redeem vaulted gold either for eligible physical delivery or for cash at SQOOT’s current redemption price, after fees and required review.

Honest and flexible.

9. Open decisions

Is cash redemption required at launch? (gates the Phase-1 sell-back decision)
Minimum cash redemption amount?
Minimum physical delivery threshold?
Redemption spread %?
Payout to bank only, or wallet first?
Settlement timing?
Which partner buys back / liquidates the metal? (A/B/C above)
What happens if AML review blocks redemption?
What happens if market price moves after quote expiration?

10. Product summary

If SQOOT includes sell-back, position it as:

Buy gold.
Send gold.
Hold gold.
Redeem gold.
  Redeem for delivery when you want physical gold.
  Redeem to cash when you want money back.

Simple language, the feature customers expect.

v1 — June 3, 2026. Companion to the coin spec, gift-card teardown, inventory/Dillon Gage architecture, and the “What We Build” brief. Cash redemption requires counsel/banking/compliance sign-off before launch (money transmission, AML, settlement, payout).