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Tokenized Diamonds
Marketplace

Tentative Frequently Asked Questions for the Diamonds project 

How is the workflow of the Platform organized ?

The interaction between the User and the Platform takes place as follows:

  • The User creates an account on the Platform.
  • By registering on the Diamore platform, the User agrees and accepts the Term of Use.
  • Search and purchase a diamond.
  • Payment of the invoice.
  • The user can see all purchased diamonds as well as the NFT (not for sale) in his personal cabinet. 
  • The User chooses between two options: to pick up the diamond or to leave it in storage in an Authorized Vault.
  • In case of storage, the User receives NFT, after passing KYC.

What is required to register on the Platform ?

In order to access the Platform, you must register with a Web3 wallet (MetaMask or WalletConnect). 

What options do I, as a User, have for buying a diamond on the Platform? 

As standard, we offer 2 main options for interacting with our Platform:

  • Simple diamond purchase. At this stage, you simply pay for the selected diamond, fill in the details for delivery and the diamond dealer will hand over your diamond to the Special Delivery Service, which will ensure the transportation and safety of your diamond. To hand over your diamond to you, you will need to provide proof of identity and financial documents of payment to the representative of the Delivery Service. In this case, an NFT (not for sale) also will be displayed in your personal cabinet.
  • You are buying a diamond and issuing an NFT. If you choose this option, the diamond stays with us and we place it in our verified Authorized Vault, and you as the owner receive an NFT (not for sale), which is a voucher to receive the diamond from the vault. The issuance of the NFT and storage of the diamond is subject to a fee and is charged on an annual subscription basis.

What do I have to do to receive a diamond?

The diamond is delivered by Special Delivery Service. The platform will ask you to fill in the necessary details for delivery and give us the NFT for redemption (if issued). To receive the diamond from the courier, you must go through the compliance procedure as per the rules of the Delivery Service.

Is diamond delivery a paid option?

Yes, delivery is a paid option and is fully covered at the Platform User's expense.

How is the Platform structured ?

The Platform consists of three interconnected legal entities:

  • The headquarters of the Platform is located in the UK. This company operates the marketplace and the Platform as a whole. The purpose of the Platform is the innovative placement and sale of Merchants' diamonds. The Company and the Platform are not a party to a diamond sales contract, but merely provides an opportunity for Platform Users and Merchants to find each other. The activities of the Company are to be: 47910 - Retail sale via mail order houses or via Internet; 63120 - Web portals. The Platform is a commission agent if the clients of the Platform want to deposit diamonds. This company has a network of trusted Authorized Vaults around the world, with which it has entered into the necessary partnership agreements.
  • A company in the BVI - provides the output of the NFT.
  • UAB Manimama Exchange is a company incorporated in Lithuania and licensed as a virtual asset service provider. The company is designed to provide crypto-processing during the Platform's activities. It is thanks to this provider that Clients can use cryptocurrencies to pay for diamonds, and Merchants can receive cryptocurrencies or fiat funds to receive payments under cryptocurrency purchase and sale agreements.

Who are Merchants? 

Merchants are diamond stores that have registered on the Platform and provide Platform Users with an opportunity to buy certified diamonds.

Can I pay for the purchase of a diamond with cryptocurrency? 

Yes. The Platform provides payment only in cryptocurrency (USDT). To ensure cryptocurrency transactions we engage a partner company UAB Manimama Exchange with VASP authorization and authorized capital of 125 000 EUR. Merchants are verified by Manimama Exchange and open a special cryptocurrency wallet, which will receive funds from Clients.

What confirms the ownership of a diamond?

At the moment of payment for a diamond, a sales contract is automatically generated between the Platform User and the Merchant, according to which the User receives ownership of a real diamond. When the transaction is completed - the User's wallet will receive an NFT (not for sale), which will indicate the successful conclusion of the sales contract and certify the fact that the sale has taken place. After the diamond is placed in the vault, the same NFT will be updated with new metadata and its NFT (for sale) status will change. But for this you need to go through KYC beforehand.

What is an NFT (not for sale)? 

It is an NFT that includes information about a particular diamond, its certification, as well as a reference to the diamond's sales contract and its owner. This NFT is not alienable in favor of a third party. It only confirms the conclusion of the diamond sales contract and the fact of the emergence of ownership of the diamond. This NFT is not subject to sale, transfer to third parties, pledge or any other form of alienation of ownership of the diamond. 

In order to be able to sell an NFT on a marketplace or other venues, it is necessary to deposit the diamond. This is the only way to guarantee the absence of encumbrances and third-party rights to diamonds. This is how we provide "proof of reserve". After the diamond is placed in storage, the same NFT will be supplemented with new metadata and its NFT (for sale) status will change. But for this you need to go through KYC beforehand.

How to deposit a diamond? 

The User can receive a physical diamond at his address, and he will also own an NFT (not for sale) with the characteristics and the entire history of the diamond.

If the User wishes to deposit the diamond using the Platform, he/she clicks the "arrange storage" button, after which he/she has to pay for the services of issuing the NFT (for sale) and the annual storage fee. The User enters into a Commission Agreement with the Platform - a company in the UK which is the commission agent for the storage agreement with Authorized Storage. In this case, the Client is the commissioner who instructs the Platform to enter into the storage agreement on its own behalf and at the Client's expense.

What is an NFT (for sale)? 

Once a Custody Agreement has been entered into, the UK company requests the BVI company to issue an NFT (for sale). The NFT (for sale) can be transferred to a third party and this token will be a voucher under the Custody Agreement. By presenting this NFT (for sale) for redemption, the person can receive a physical diamond.

What is the relationship between an NFT (for sale) and a diamond ?

Each NFT is associated with a real diamond. The NFT (for sale)  inherently confirms the User's right to own the diamond and also confirms the fact that the diamond is in storage.

How does the NFT (for sale) release take place?

The release process happens as follows:

  • The Platform receives a request from the User to issue an NFT.
  • A company in the UK being a commission agent of the User enters into a storage agreement with an Authorized Vault
  • The diamond is placed in the Authorized Vault.
  • After the diamond is placed in the vault, the UK company transmits to the BVI company a request to issue an NFT.
  • Once the NFT is created, it is sent to the User's external wallet.

To which wallet will the User receive NFT?

We provide an opportunity to connect a third-party wallet (e.g. MetaMask).

Do Users need to undergo KYC verification, if yes, at what stage? 

KYC verification may be required when entering into a comission agreement and issuing NFTs (for sale). We have to do this in order to prevent money laundering using our Platform and Merchants' diamonds.

What technology is used to issue NFT?

The token is created according to the ERC-721 token standard.

Do diamonds meet the standards ?

Our Platform verifies Merchants and their diamond documents, therefore only certified diamonds with all necessary confirmations are placed on the Platform.

Where does the Platform get its diamonds from ?

The Platform does not sell its diamonds, it offers the opportunity to sellers from all over the world (Merchants) who have passed the product quality standards to place their diamonds on the Marketplace.

Do diamonds differ from one another, can you choose ?

Yes, diamonds differ in size, color and number of carats. When buying on the site, a filter is available and the ability to select a specific diamond is available.

Can the owner of the diamond receive them in physical form ?

Yes, the owner of the diamond can receive them in physical form by picking them up himself or by receiving them by requisition. However, this is not mandatory, the diamond owner can always deposit them.

Where are diamonds stored?

All diamonds are deposited in an Authorized Vault.

How to sell diamonds ?

In order to sell diamonds, the User needs to use the NFT Marketplace offered by the Platform. In the future, we plan to allow users to sell NFTs on third-party marketplaces. However, it should be noted that in order to sell NFT on the marketplace, the physical diamond must be in the vault.

The diamond is sold on the basis of a sales contract (between the seller - the former owner and the buyer - the new owner). Based on this contract, the buyer (new owner) is also transferred the rights to the NFT (second level), which is a receipt voucher for the Authorized Vault and provides an opportunity to pick up the physical diamond.