> ## Documentation Index
> Fetch the complete documentation index at: https://docs.aarc.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Custody Architecture

> How assets are held and secured

<Info>
  **SD Global Capital Limited** is the sole contractual counterparty for iBTCY holders. Custodians and service providers listed below are engaged by the issuer for its own account. Investors do not acquire contractual rights against them; holder claims are solely against the issuer under the Transaction Documents (including exclusions of third-party rights described in the Deed Poll).
</Info>

The issuer uses institutional-grade custody arrangements with regulated providers.

<img src="https://mintcdn.com/aarc-a7fdfaac/Tco_9ku6lqgiRdBw/images/custody-architecture.svg?fit=max&auto=format&n=Tco_9ku6lqgiRdBw&q=85&s=e54cd7e4c80577d96b6d32198ee0f79b" alt="Custody Architecture" width="800" height="280" data-path="images/custody-architecture.svg" />

## Custody Overview

| Component                                     | Custodian        | Regulation                         | Role                                              |
| --------------------------------------------- | ---------------- | ---------------------------------- | ------------------------------------------------- |
| **Buffer BTC**                                | Archax Ltd       | FCA (UK)                           | Instant redemptions                               |
| **SSBAF assets (banking / primary custody)**  | Sygnum Bank AG   | FINMA (Switzerland)                | Banking infrastructure and SSBAF primary custody  |
| **SSBAF assets (sub-custody, as applicable)** | Copper Clearloop | UK-registered                      | SSBAF sub-custody within the fund’s service chain |
| **Native BTC deposits**                       | Ceffu            | Licensed in multiple jurisdictions | Deposit custodian for inbound investor BTC        |

## Custodian Concentration Risk

<Warning>
  **Archax Ltd** acts as primary custody and settlement provider for **both** buffer BTC and SSBAF fund shares. Custodian concentration means failure, fraud, or insolvency at Archax could impair both instant liquidity and yield-generating positions. See [Key Risks](/legal/risks).
</Warning>

## Buffer Custody (Archax)

The 32% instant liquidity buffer is held with Archax Ltd.

| Feature        | Detail                                                                                                        |
| -------------- | ------------------------------------------------------------------------------------------------------------- |
| Regulator      | FCA (UK)                                                                                                      |
| Account Type   | Segregated custody                                                                                            |
| Infrastructure | Institutional MPC                                                                                             |
| Insurance      | Subject to Archax’s applicable insurance arrangements, if any (see Risk Factors); not a guarantee of recovery |

**Key properties:**

* Assets intended to be held in segregated or designated accounts under applicable custody agreements and law
* Subject to FCA custody requirements where applicable

## SSBAF Custody (Sygnum, Copper, Ceffu)

The yield-generating allocation is held through SSBAF’s multi-custodian structure.

| Custodian        | Regulation          | Role                                                        |
| ---------------- | ------------------- | ----------------------------------------------------------- |
| Sygnum Bank AG   | FINMA (Switzerland) | Primary custody and banking infrastructure for SSBAF        |
| Copper Clearloop | UK-registered       | Sub-custody / settlement where applicable in the fund chain |
| Ceffu            | Multi-jurisdiction  | Native BTC gateway for deposits                             |

**Key properties:**

* FINMA-regulated Swiss bank (Sygnum) where applicable
* Segregation as described in relevant custody agreements

## No Direct Claim on Custody

<Warning>
  **iBTCY holders have no direct claim against custodians.**

  Underlying assets are held for the account of the issuer (SD Global Capital Limited), not for the account of holders. Holders have contractual claims against the issuer only.

  In any custodian insolvency:

  * Treatment depends on applicable custody arrangements and law
  * May be subject to delay, restriction, shortfall, or dispute
  * Holder recourse is against the issuer only
</Warning>

## Custody Controls

| Control       | Implementation                                                                                            |
| ------------- | --------------------------------------------------------------------------------------------------------- |
| Segregation   | Assets intended to be held in segregated or designated accounts per applicable custody agreements and law |
| Authorization | Multi-party approval for movements                                                                        |
| Monitoring    | Real-time balance verification                                                                            |
| Insurance     | Per each custodian’s applicable arrangements, where provided; subject to limits and exclusions            |
| Audit         | Regular third-party audits                                                                                |

## Asset Flow

### Subscription

```
Investor BTC → Archax (Buffer) → SSBAF Deployment (Monthly)
```

### Redemption

```
SSBAF → Buffer (Monthly) → Archax → Investor Wallet
```

For instant redemptions, BTC moves directly from Archax buffer to investor where buffer capacity allows.

## Counterparty Risk

| Party                           | Risk Level | Mitigation                                |
| ------------------------------- | ---------- | ----------------------------------------- |
| Archax (buffer and fund shares) | High       | FCA-regulated; concentration risk remains |
| Sygnum (SSBAF)                  | Critical   | FINMA-regulated                           |
| Copper (SSBAF)                  | High       | Institutional arrangements                |
| Ceffu (deposits)                | High       | Licensed arrangements                     |

Failure of any custodian could result in loss or delayed access to assets.

## Proof of Reserves

Monthly verification confirms custody holdings match outstanding iBTCY supply.

| Component   | Verification                                                                  |
| ----------- | ----------------------------------------------------------------------------- |
| Buffer BTC  | Dashboard attestation via Accountable; on-chain PoR feed launching separately |
| SSBAF Units | NAV reconciliation with Sygnum                                                |

<Card title="NAV & Transparency" icon="chart-line" href="/product/transparency">
  How reserves are verified on-chain
</Card>

***

<Note>
  Available only to eligible professional/qualified investors on an invite-only basis, subject to onboarding and compliance approval. For informational purposes only and not investment advice. Not an offer to the public or a solicitation where unlawful. No retail distribution. Not available to US Persons.

  [Disclaimers](/legal/disclaimers) · [Platform and issuer](/legal/platform-legal)
</Note>