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# What is the legal principle behind fractional gold ownership?

The legal principle allowing direct ownership in owning any fraction of this digitised gold is one of co-ownership – this allows you to enjoy full legal title of a portion (or full), of a unique gold coin or bar in the vault.

In South Africa, the only gold form held in the vault is 1 ounce gold Krugerrands.

A customer therefore has no counter-party risk, as the user is the legal owner of the gold – regardless of the size of the fraction or portion owned.

**What is counter-party risk**

Counterparty risk is **the probability that the other party in an investment, credit, or trading transaction may not fulfill its part of the deal and may default on the contractual obligations**.