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PostPosted: Sat Nov 29, 2014 8:59 pm
by twarden
I am proud to introduce my gateway project, XAGATE, Canada’s second gateway for both Canadians and the worldwide community.

Terms of Service


Xagate was originally based off of the concept of a gold bullion bank, which would resolve payments into Canadians dollars from precious metals, stored within a traditional commercial bank business with Chartered Bank status within Canada.

Due to the near impossibility of receiving a Charter Bank status, the concept shifted to a Credit Union idea, with the same concept of silver and gold resolving to Canadian Dollars at a point of sale terminal. This venture ended as I discovered a group of 20 individuals must come together to create a Credit Union, and when submitted to its regulatory body, can be declined without any reason given and with a huge loss of time to develop the project with others and the capital which could vanish with this result.

Enter the Ripple Network now. Ripple allows me to act as a bank with just a simple business license within Canada and by carefully following the laws and regulations set out by FINTRAC, The Financial Commission of Ontario, and so forth.

The idea was originally going to be based off of the gram unit. Community members have critiqued this idea and suggested that XAG should be used instead of the initial idea of offering an IOU called the XSG, redeemable for one gram of .999 fine silver. The reason for this is to provide market liquidity of the XAG asset over the Ripple network.

As for certain promises and descriptions of XAG.XAGATE (as an asset) which has been posted in the prior Market/Exchange introduction thread, has changed due to extraordinary circumstances within my personal life while developing this project since the Summer; full-time. Xagate, as a business, was going to offer silver from myself investing in some pieces and offering the IOUs on the network.

The idea of this was that each month, silver would be come available on the order books at a known time, as per a schedule. A vote could occur with community members to allow the XAG.XAGATE asset to become more scarce or more available each month; this idea was simply intended to see if there would be an interest in not having to send your own silver to Xagate or order off of a reputable online bullion dealer via a polling process to see what the majority would prefer.

The thought process behind this idea was that those who do not want to send their own silver or spend their own cash with our credit card gateway option to get into Ripple. You would be able to purchase XRP/CAD/whatever and exchange that for this asset. This idea has been modified as per my ability to wisely invest into this project while still being able to live comfortably enough with the little income I have available. There will be an initial offer of only 2 ounces and 5 grams of silver, from my own stash, at the launch of the gateway. The investment schedule plan will not be enacted upon until such a time in which it would better reflect my own personal situation and the full release of the gateway.

I once thought that I must register a new business license name because I will say now that this is just a beta site release. We will have a new domain name when the site goes to full release.

Unless I can raise enough capital, this will not be done at full release. AFAIK, EV SSL certificates cannot be transferred to a new domain and I would have to register a second certificate for both domains. This is not financially feasible and as I will be remaining primarily focused on silver transactions as the bread-and-butter of this project due to its affordability to the public compared over gold and platinum group metals.

Transit Fees

Xagate does not charge Transit Fees for the usage of its assets over the Ripple Network. This is subject to change at any time. A grace period of 90 days will occur in which the Transit Fee will not be in effect after it has been announced to the community via this forum thread and on the Xagate web site.

A Statement of Disapproval Regarding BillC51 via wrote:My name is Taylor Warden and I am an open source developer who uses a money remittance software which is an emerging technology in the field of Information Technology.

I am a Ripple Developer and Service Provider. Ripple is an open sourced protocol, just like SMTP is for EMail, that is maintained by California-based Ripple Labs. Ripple Labs does not own the protocol; they build applications for users and developers, provide services to businesses built on the protocol, and control the supply of a math-based currency of the same name: Ripple (XRP).

As a developer, business owner, and operator of a Ripple Gateway, I wish to state to the Canadian Government that I advocate the use of "virtual currencies" (better known as cryptocurrencies or math-based currencies). I will not accept the Canadian Government labelling me as a terrorist, drug trafficker, money launderer, or as a means to sponsor acts of terror. I am a developer and service provider for the Ripple Network. I reject to live in fear of my Government should the Sentate vote to pass this bill, thus, I wish to petition all members of the Senate to vote against BillC51.

I reject to live in fear for storing or using cryptographically secure means of wealth.

Should this legislation become Law, it will not affect my dissidence towards the Canadian Government.

I reject to live in fear of unlawful seizures of my bank account's funds, takedowns of this website, unlawful arrest/detention, or seizures of my hard-drives/computers for the services provided by the XAGATE gateway project in which I own and operate.

I reject to live in fear for choosing to further the development of the Ripple protocol or applications built for the network. I also reject to live in fear for choosing to take part in the study and development of this emerging technological field of improved transmissions of financial instruments in a cryptographically secure manner.


PostPosted: Sat Nov 29, 2014 9:00 pm
by twarden
This post contains questions and answers from community members which have been addressed. Other questions posed in the brainstorming and project introduction thread in the Market/Exchange board and pertinent information is located at the top of this post.

RafOlP wrote:Why not XAG ?

I wanted to create a credit union in Canada for gold and silver on deposit and when using a debit card, the system would calculate the CAD price, fees, and sell the gold/silver in deposit for the purchase at a PoS. That idea is more complex to develop than this and also there is no regulatory entity to say 'no' to my business plans when I go to incorporate and begin operating in Ripple, unlike with a Credit Union’s incorporation process. There are also a lot of powerful players in the fiat banking system that wouldn't like if I had a legally operating financial institution receiving gold/silver from the public, issuing a debit card for use in the CAD economy, while allowing citizens holding real money to not lose purchasing power due to QE.

Due to this initial plan the gram would have sufficed as the measure of value instead of an ounce of silver. The debit card system for this bullion credit union would resolve the smallest amount of precious metals on deposit, so if you were purchasing a 2$ coffee, your gold wouldn't be used first for such a small purchase.

tmakarios wrote:All silver deposits are kept in a secure location within Canada, with security, and in a safe for storage. I am the sole key holder of this safe. I am the only employee of this gateway and exchange.

What happens if you become incapacitated for some reason?

This is a great example of one of many shortcomings of creating a cryptocurrency business within a centralized model.

I will leave instructions for a colleague, who I would entrust with my life, who will work as my proxy to process any remaining transactions and close the XAGATE website in the case I were to, say, slip into a coma or die in an accident such as a car hitting me or a piano falling on my head. However, I plan to ride in the bus, not on it’s spoiler :P

Is the 0.02 XAG fee feasible?

The first method is for those who already have their silver to save on service fees charged by XAGATE to get their silver “digitalized.” This is the flat rate per ounce fee given only to those who do not require to use a credit card to purchase silver from an online bullion dealer to our vault and instead use their own silver from their own personal stack within their household. There is a 2% fee charged to the total amount of silver received via the credit card gateway option.

pigeons wrote:
twarden wrote:My mistake. I have missed another thing. You receive 31.08 XAG per ozt. This reflects a 0.02 fee.

I'm not yelling to be rude. I'm trying to get your attention because this is like the third time. And for current purposes we are assuming no fee, we can worry about the fee once you understand what I'm saying:


This is because 1 XAG = 1 ozt. Why are you trying to make it a gram when that's not what it means? STOP!! XAG = 1 troy ounce.

Yes, as the community suggested to me, the gram should not be the unit of measure for this silver asset. Things got muddled up through edits because I missed things. The idea originally started as “XSG” and was converted later.

1 XAG.XAGATE is one troy ounce of at least .999 fine silver. Single grams of can be requested at withdrawal for your XAG IOU, however, this is limited to supply on hand and may not be available at the time of your withdrawal request. The reason for this change was not just community suggestions for improving market liquidity, this eloquent post written by Sukrim details more:

Sukrim wrote:The point is that Ripple does not know that XAG.YourGateway == 1/31th of XAG.SomeOtherGateway, it will treat them as equal by default when rippling is enabled. This can lead to bad usability and scams, just like someone handing out "US-Dimes" called "USD".

If you don't care about this stuff, well, you're of course free to do whatever you want and deal with the angry customers that got ripp(l)ed off later. You were warned.

To give context to this quote, this was Sukrim commenting on the editing errors where I had left 31.08 XAG on the opening post when it should have read 0.98 XAG.

Twarden wrote:
Sebastien256 wrote:Why the asset has no decimal? That seems pretty weird to have only a hundred token available?

The asset has no decimal because I wished that each token represented 1% of 40% of the total trade volume, after expenses. I wished for each token to be scarce and to reflect that in its initial price. As mentioned in the Ripple forums announcement thread, there are only going to be 9 tokens offered (one each) via a lottery of 25 beta testers. A majority of Xagate is kept to have further revenue for development, once dividends have begun to be paid.

Does anyone else have any further questions?
tldr; This is simply how I wished to issue my asset in which I paid the 1000 NXT service fee in order to create these tokens. The business requirements behind this issuance of these shares of my Gateway are my own to shape.

This was a terrible plan and very short sighted of myself. A poll was voted upon with the investors of XAGATE as of June 2015 and a new asset will be issued before July 2015, the details will be made available on the XAGATE blog, so check it out!

Johnnyb34 wrote:I do want to add a bit of a critiques of my own -- I hope you don't mind. But, for someone like me who just has an interest in buying a little silver, I think you should make it clear what is going on. I am not even sure if I am buying silver (or trying to) by buying XAG. I mean, is that what I am doing when I set up an XAG market with the gateway address given?

The project seems great, don't get me wrong, but I must say that I may have skipped the whole thing until further clarification, if I wasn't communicating with you.

When you buy XAG over the Ripple network, you're buying a digital receipt for physical silver.

It is a literal XAG IOU; I owe you that much silver in physical delivery when you request to withdraw it from the Gateway. Please remember that the minimum withdrawal limit is 10 XAG. You can request a variation of rounds, bars, and/or fractional pieces as along as they are within stock at the time of your withdrawal request.

Further questions made by inquiring individuals, in which the reply has pertinent information regarding the operations of this gateway, will be updated within this post. Please, join the conversation in this thread if you have a question you would like answered or private message me!

Xagate Business and Development News

PostPosted: Sat Nov 29, 2014 9:00 pm
by twarden
Status: Open for business @
In application process for registration to the IRBA. RippleUnion is merging with XAGATE.

Hours of Operation:
Weekdays: 9:30AM-5:30PM EST
Saturdays: 1PM-4:30PM EST
Closed Sundays and Holidays


July 22, 2015:

RippleUnion is merging with XAGATE. The Terms of Service have been updated as of today. The Gateway Audit for this month will probably be done on Friday as I have a meeting scheduled on Saturday. Noted above that XAGATE is closed on Sundays and Canadian Holidays.

June 29, 2015:

The server is down for migration to a dedicated server. Please bear with me during this server migration, if you require an immediate deposit or withdrawal, please email taylor dot warden @ sympatico dot ca.

June 16, 2015:

Click through here to the XAGATE Business and Development News Blog, with Gateway Audits (soon Tm)! Added all of the old posts from this thread and links to posts where applicable as the first blog post.

This thread is now concerned with the discussion pertaining to how the Gateway operates day-to-day, its terms of service for the Gateway Project itself , the terms of service for the profit-sharing asset on the NXT Blockchain, and of course general Q&A/Support as I know that I do sometimes muddle my posts a bit by typing too quickly which causes bad spelling and/or grammar which slips through the cracks when I proof-read. I would like to keep discussions about the Loyalty Program out of here as it is more relevant in this thread.

June 12, 2015:


June 7, 2015:


May 31, 2015:

Soft-launch of all assets: XAG, XAU, XPT, XPD, BTC, LTC, NXT, and CAD.

To reach the deposit or withdrawal page for gold, platinum, or palladium click here.

Due to some rather unfortunate news delivered to me by a friend on Friday evening, my attention towards a few details pertaining to a special "surprise" announcement for a service XAGATE wishes to offer to the Ripple community will unfortunately be delayed until later this week. This will be final by the end of the week, stay tuned for more, and my apologies for not launching this today (plus ruining the surprise factor).

May 27, 2015:

Changes to the Terms of Service:

Monthly Audits

Audits are performed monthly on client deposits. This audit will be released via the XAGATE web site and on the Official Ripple Forums no later than the 25th day of each month. This audit will include the following proof of custody:

-Video evidence of both precious metals and fiat held in the vault
-Photographic evidence of any remaining dollars stored in the RBC account via internet banking
-Photographic evidence of Bitcoin, Litecoin, and NXT wallet balances via and

Other than this change to the Terms of Service, I have also updated the website with my PGP keys along with my signature.

May 25, 2015:

The web site has been cleaned up and new styles will be implemented shortly for a better browsing experience. The following additions to the Terms of Service were made today:

    Crypto withdrawal pricing somehow was missing, it has been added:

      Withdrawals from the BTC gateway incur a 0.0001 BTC transaction fee, plus a 0.00015 BTC service fee.
      Withdrawals of LTC incur a transaction fee of 0.0005 LTC plus a service fee of 0.015 LTC.
      Withdrawals from the NXT gateway incur a 3 NXT service fee.
    Gold, Platinum, and Palladium pricing information:

      XAU Deposits

      XAU is subject to a 0.899% service fee which is applied to the total amount deposited.

      XPT Deposits

      XPT is subject to a 0.899% service fee which is applied to the total amount deposited.

      XPD Deposits

      XPD is subject to a 0.899% service fee which is applied to the total amount deposited.

      XAU Withdrawals

      Withdrawals of XAU incur a service fee of 0.499% which applies to the total withdrawal amount. The shipping rate depends on the destination address. Withdrawals for XAU.XAGATE incur a 10$ fee for Canadian residents, 15$ fee for USA shipping, and 30$ for flat-rate worldwide shipping (plus applicable taxes).

      XPT Withdrawals

      Withdrawals of XPT incur a service fee of 0.499% which applies to the total withdrawal amount. The shipping rate depends on the destination address. Withdrawals for XPT.XAGATE incur a 10$ fee for Canadian residents, 15$ fee for USA shipping, and 30$ for flat-rate worldwide shipping (plus applicable taxes).

      XPD Withdrawals

      Withdrawals of XPD incur a service fee of 0.499% which applies to the total withdrawal amount. The shipping rate depends on the destination address. Withdrawals for XPD.XAGATE incur a 10$ fee for Canadian residents, 15$ fee for USA shipping, and 30$ for flat-rate worldwide shipping (plus applicable taxes).

These options will become available on the web site by May 31, 2015 in the morning.

In Development news, I am speaking with a colleague who may soon act as a market maker to provide liquidity to the CAD.XAGATE. I had planned by now to have swapped an equal amount of cash and IOUs with RippleUnion's operator Singpolyma, however, funding has been too scarce to be able to put this plan into action at this time. Furthermore, I am exploring options for business grants available within Ontario, Canada for self-employed individuals and other small business grants.

Interested investors: 10% of XAGATE's profit-sharing asset is available on the NXT Secure Exchange at a reduced rate. Please refer to the Terms of Service for more information on how XAGATE's NXT asset operates.

Last, with the new IRBA requirements (as stated in my previous update), I will be posting audits of assets stored in our vault and provide video and/or photo evidence. These audits will be posted in this thread no later than the 25th day of the month; expect an update shortly to the Terms of Service to reflect this new business practice.

May 15, 2015:

The front-end clean up is still under way. The Terms of Service have been edited today for mostly grammar an removing some vagueness as well as adding hyperlinks where applicable. The website may go offline or change as you access it over the weekend while more modifications are done to it.

May 9, 2015:

Development has continued since the last post made in March and there has been a lot to talk about now. Xagate still operates without IRBA membership but I hope that this will only be the case for the next couple of months. Furthermore, the IRBA has changed some of their disclosure standards, which will possibly require a change to its Terms of Service and will now take on the following new disclosure standards set forth by this organization. The IRBA operates with the following disclosure standards:

Corporate address and business registration number
Email and phone contact details
Names of all officers
Know Your Customer requirements for the gateway’s jurisdiction(s)
Deposit, withdrawal and transfer fees
Declaration that the gateway is in compliance with existing local regulations and laws

Additionally, IRBA gateways will adhere to certain best practices:

Provide banking partner details (private but verified)
Site protected with a valid SSL certificate
Maintain 100% (or better) asset coverage against IOUs issued in segregated accounts for customer deposits and frequent balance updates for all assets in custody (fiat, crypto, metals, etc.)
Customer service that is responsive within 24 hours

Xagate will therefore retired posting outstanding balances as of last month. Xagate always maintains at least a 100% asset coverage against IOUs that are issued for customer deposits. Xagate will now update the public as to the assets it keeps in custody on a monthly basis. This auditing process will include:

-Screenshots of Xagate's Cryptocurrency wallets (Bitcoin, Litecoin, and NXT)
-Screenshot of Xagate's fiat balance via internet banking
-Video audit of precious metals held in custody

All precious metals are now held within a Royal Bank of Canada vault with 24/7 security. Gold, Platinum, and Palladium will become available for deposit to Xagate on May 31, 2015 with service fees being introduced May 25, 2015.

Last, an error when dispersing the first round of dividends to investors and anyone who held the assets received a much larger dividend than what was expected and the business did not receive its share of the dividend payment. Therefore, dividends will not be paid for May an will resume again June 15, 2015.

As for the development of the back-end and the web site, the back-end development paused mid-April as I have decided to change my primary focus of development to the front-end. I would like to redesign the front-end with the upcoming acceptance of all precious metals into the Gateway. Once this task has been accomplished, then I will continue to make the new version of rippled, rest, and gatewayd talk to each other so crypto transactions can become automated.

March 20, 2015:

Outstanding Balances as of March 20, 2015 are now available for the public to audit. My apologies for the few days that this was delayed.

Awaiting word from the IRBA on the status of Xagate's application to be listed as a member gateway.

March 10, 2015:

The IRBA has since restructured the application process for Gateways to gain membership. Xagate has begun the application process for membership to the IRBA as of yesterday.

For the matter of disclosure of the news posted on Feb. 9th, we have decided that when is to Xagate deal with 1,000$ melt value or 50 ozt of silver, to use an RBC safety deposit box, where we already bank at, as our cold storage vault for our precious metals transactions. The hot storage vault resides at the registered business location with a fraction of the available assets to quickly process small withdrawals. We already deal with our fiat transactions with this bank, so it is a good fit that we can store the precious metals for the gateway with the same people who allow us access to deal with Canadian dollars.

I am looking to begin making markets to provide liquidity to the CAD.RippleUnion/CAD.Xagate market shortly. The other markets which will have more liquidity provided them shortly will be XRP/NXT, XRP/XAG, XRP/CAD, CAD/XAG, CAD/NXT, and NXT/CAD markets; for access to these emerging markets trust the issuing account ~Xagate.

For interested investors, the first round of dividends will be paid out on the 15th of April. If you are interested in investing in the further development of this gateway project, shares are available on the NXT Secure Asset exchange for 672.75NXT or 0.03534628BTC each.

Last, I am in the process of building rippled, rest, and gatewayd on the development server for deployment onto the production server once everything has been tested thoroughly. A rough ETA on the pricing, deposit, and withdrawal limits for XAU and the platinum metals groups will be available soon. Xagate will not demurrage precious metal IOUs nor associate any transit fees with its issued IOUs.

February 13, 2015:

Condensed crypto deposits and crypto withdrawals on to two pages. There was some minor downtime this morning, everything has been resolved since then.

Also reduced the BTC Deposit Fee to 0.00016BTC; the prior listed fee of 0.0016BTC was a bad typo.

February 11, 2015:

I have overhauled the acceptance of cryptocurrency to Xagate along with accepting new payment methods for CAD.Xagate IOUs and accepting other Ripple IOUs. I have switched to using the coinpayments processor to manage the deposit process. This allows for another pathway to the CAD.Xagate IOU as well as now accepting LTC deposits. LTC withdrawals will be available on February 13, 2015.

Cryptocurrency Deposits (BTC, LTC, NXT)

List of the supported cryptocurrencies, fiat, and Ripple IOUs. All fees are subject to change.

Cryptocurrencies (plus Fees):
BTC 0.5% + 0.00016BTC
LTC 0.9% + 0.0026LTC
NXT 1.99% + 1.5NXT

Fiat (plus Fees):
CAD 3.50$CAD

Ripple (plus fees):
XRP 0.99%
CAD.RippleUnion 0.59%
BTC.SnapSwap 0.59%
USD.SnapSwap 0.59%
EUR.Bitstamp 0.59%
GBP.Bitstamp 0.59%

Minimum Deposits:

Deposit Instructions

Trust the gateway rGgS5Hw3PhSp3VNT43PDTXze9YfdthHUH with no less than 0.5 BTC, 10 LTC, 150 NXT, or 20$CAD. Minimum deposits to the gateway are 0.005BTC, 1LTC, 100NXT, and 20$CAD.

Visit the Crypto Deposits section of the Xagate web site. Choose which IOU you would like to have deposited to your Ripple wallet. Use a valid email address that you can be reached at as well as include your Ripple Address in the Note to Seller section, this is very important because without your Ripple address, it will slow down the deposit process. We will wait for your to complete payment for your deposit and verify the transaction. Once verified, usually within 3-48 hours, we will issue your IOUs to your Ripple wallet.

February 9, 2015:

I've taken the site is down to be able to perform some needed maintenance. It will be restored by Tuesday afternoon, if not sooner. If you would like to process a transaction while the site is offline for this short while, please message me over the Ripple forums and I will get to you ASAP.

Other updates include the continued search for a lawyer/notary who will be able to write a letter for the EV SSL cert. application process. I am still awaiting an appointment date to speak to an aforementioned colleague about purchasing life and business insurance. I am initially looking to insure up to 600,000$ of liabilities. I will also be expanding my secure storage space, I will be segregating into a "hot and cold" storage system for the precious metals transactions I will conduct. This will include another insured safety deposit box. Furthermore, I have purchased a separate server for testing the necessary software packages to be able to possibly include the feature of automating the processes of NXT transactions to and from Ripple. At this time, I'm not completely certain that Xagate will offer this feature within the public beta or if it will be saved for the full release of the gateway after being thoroughly tested. Shares of Xagate are currently available for 0.03563557 BTC each or 672.75 NXT each on the NXT Secure Asset Exchange. The first series of dividends will be payable on April the 15th.

I have also mentioned an idea to promote the growth of gateways, you can read more in this thread. If more users are interested in this, I can change my schedule to split my time between the development of these two projects. The idea is for a web kit to be made for those interested individuals who would like to begin to operate a ripple gateway. They could easily edit just a few lines of code by following a readme document. The web kit would be built in mind that it is to be an easily upgradable mock gateway web site where the operator may want to use rippled plus gatewayd to automate transactions. This web kit will be offered for free, being published under a creative commons license.

January 26, 2015:

Released the BTC gateway option with a one day delay due to working out the last kink in the system. Please report any unusual error messages to my aforementioned email or please PM me with any issues you may encounter.

Public beta is still in beta.

January 20, 2015:

Bitcoin Gateway service fees have been announced and added to the opening post. Bitcoin transaction will become available on January 25, 2015.

BTC Gateway

Bitcoin was the for-fun internet currency which has begun to shape the future of secure electronic payments. It is the most recognized cryptocurrency in the world, being the first cryptographic-based currency to gain value an worldwide media attention by using an economic principle similar to that of producing gold.

Deposit BTC

Trust the gateway rGgS5Hw3PhSp3VNT43PDTXze9YfdthHUH with no less than 0.005 BTC. Minimum deposits are 0.005 BTC. Applicable fees are 0.5% applied to the deposited amount, plus a flat-rate of 0.0015 BTC.

Initiate a deposit request on the Xagate web site. All information pertaining service fees will be provided to you at this time in a quote, if you accept, you may follow the instructions to complete your deposit.

Redeem BTC

Initiate a withdrawal request on the Xagate website. Include a valid BTC address, a valid email address, and the amount. You will be provided with instructions to send your BTC IOUs to Xagate. Upon confirmation, your BTC will be sent to the provided address, less transaction fees of 0.001 BTC plus a 0.0015 BTC service fee.

All transactions will be made through the payment processor. Xagate will be accepting many, many more crypto currencies through these merchant service tools, including PayPal for CAD IOUs. The range of accepted cryptocurrencies will be announced in February along with the applicable service fees for using PayPal to purchase/redeem CAD.XAGATE.

If you have a favourite supported cryptocurrency, please write me @ taylor dot warden at sympatico dot ca to suggest its implementation!

January 17, 2015:
Xagate launches the second ever Canadian Dollar gateway this weekend! Singpolyma (RippleUnion) and I will be swapping an equal amount of our CAD IOUs with each other in the near future to improve liquidity of CAD over Ripple. The minimum deposit for CAD.XAGATE is 20$. Please refer to the Laws affecting Transactions section of the Terms of Service if you plan to deposit or withdraw large amounts of CAD from Xagate.

Other updates include being ignored by 6 lawyers within my city when I inquire about getting an opinion letter written for the extended validation process. I've given up on that venue and I am currently looking for a notary service at an affordable price to finally get the certificate I need to become an IRBA member gateway. The SSL process is hellish, I was not prepared for this rig-a-mer-roll when I encountered it. My goal is to be an IRBA member by Spring 2015, Summer 2015 at the absolute latest.

I am still thinking of a few concepts for how to get the BTC gateway off of the ground by the end of this month. An announcement will soon be made with the expected release date, the limits, and service fees. I am also seeking affiliation with a reputable online bullion dealer, I have not received a response as of yet to my application.

January 10, 2015:
Processed the first deposit to Xagate!
Changed Hours of Operation (see above).

january 5, 2015:
Completed taxes for 2014 tax year. Submitted documentation to the CRA.
Potential Investors can audit Xagate at the following links: Receipts, General Journal, first Income Statement and Balance Sheet (year of 2014 expenses). ... 1959e9f7dd
Began the process to verify my identity at to request a loan. I will be backing this loan with my personal bitcoin income from mining, Xagate's income, and my personal income to crowd-source bitcoin for covering transaction fees and issuing a some BTC.XAGATE IOUs for release to the order book at launch of the BTC gateway option.

January 4, 2015:
Additionally I have registered ~Twarden as a Docker at for XAG and NXT.

January 1, 2015:
Happy New Year everyone! I look forward to 2015 with the official launch of the CAD gateway scheduled for release for January 16th; a Bitcoin release date is soon coming! Additional shares of the Xagate Asset on the NXT SAE, which were reserved for testers, who ended up not participating in the closed beta test will be released to the SAE on January the 7th. See the ratification to the IPO's terms of service here. The last price of Xagate at the time of this update is 672.75 NXT or 0.04059373 BTC or 523.312 XRP per share. Luckily, one day, I will look back at this price an laugh hard with all of the other shareholders. Here's to potential and growth this New Year!

December 29, 2014

December 25, 2015:
Xagate is open for business. The CAD options will become available within the first week of January. I am still awaiting a response from cavirtex merchant services application to accept bitcoin for early 2015. The site has been secured with a RapidSSL certificate until the completion of the Extended Validation process can be finished for a "green bar" SSL certificate. Merry Christmas and a Happy New Year!

December 22, 2014:

December 19, 2014:
The is still unavailable during this time as the web hosting provider is undergoing maintenance of a possible kernel vulnerability. Additionally, closed testing of the business logic without an operational web site has been completed with no snags or catches. The second phase of closed testing will begin ASAP as that is dependent on the web hosting provider's technicians. Xagate has formally affiliated with our web hosting provider and will offer an affiliate link on each web page. Developers and other interested individuals may compare their services to other service providers within this competitive space. I have also updated my forum signature with this affiliate link.

December 13, 2014:

December 12, 2014:

December 11, 2014:

December 7, 2014:

December 1, 2014:

Re: [ANN]Xagate [Offering: XAG, CAD, NXT Soon: BTC, all PM

PostPosted: Sat Nov 29, 2014 9:41 pm
by Johnnyb34
That sounds very intriguing! You can count me in as one of the people you need for your 25 beta testers.

Good luck with the project!

Re: [ANN]Xagate [Offering: XAG, CAD, NXT Soon: BTC, all PM

PostPosted: Sun Nov 30, 2014 6:22 am
by twarden
Johnnyb34 wrote:That sounds very intriguing! You can count me in as one of the people you need for your 25 beta testers.

Good luck with the project!

I'm glad to have your help and thanks for the good luck! I can't wait to hear more on your own project as it becomes available as well :)

Also, the IPO information has been added to the OP.

Edit: Added question posed by a user in the thread to the bottom of the second post regarding the Xagate Asset on the SAE.

Re: [ANN]Xagate [Offering: XAG, CAD, NXT Soon: BTC, all PM

PostPosted: Sun Nov 30, 2014 6:59 pm
by twarden
Released CAD Gateway information. Updated ToS regarding CAD Gateway pricing information. Information can be found in the OP or below.
Edit: Updated this post with more information regarding the CAD gateway, deposits, withdrawals, service fees, and taxes applied to transactions.

Redeem CAD

We require you to initiate a Deposit Notification on the Xagate web site. We will then send you a reply via the email you provided us with a quote and further instructions. If you agree to this quote, follow the instructions and within 3-48 hours we will credit your prepaid card.

The service fee is 0.20%, applied to the total amount withdrawn plus a flat rate fee of 1.50$, charged by Xagate for this service.

Further details on the CAD Gateway options below:

CAD Gateway

Xagate uses the Visa PayPower system to issue and redeem Ripple IOUs resolving to Canadian Dollars on your prepaid visa credit card. Visa PayPower cards cost 5.95$ to activate a new card. There is a service fee of 3.95$ for using a reload pack or PoS terminal to reload your prepaid card. There is no service fee charged by Visa for transfers between cards, however, Xagate does charge a service fee for this service. Visa imposes a minimum reload of 20$ with a maximum of 950$.

More information can be found here:

Yesterday, I have set up a bank account with RBC for the purposes of increasing the deposit and withdrawal methods of the CAD.XAGATE IOU. There is a hard limit of 100$ per day, per account. This is because the daily send limit is currently set to 1000$. This will be increased in the future as Xagate builds transaction history with RBC and moves on to a larger account type. The current account is 4$ monthly. 60$ was deposited to activate the account. A minimum balance of 60$ will be kept in this account monthly to process transactions, whereas, the breakdown is 48$ is required to pay the 4$ account service fee plus the service fees charged for interac e-transfers. Dollars are withdrawn as they are received and deposited at the time a withdrawal request is initiated.

Deposit CAD

Initiate a Deposit Notification on the web site. We will contact you with the instructions to a. deliver your IOUs in exchange for Visa PayPower credit or b. initiate an interac e-transfer. If you agree to this quote, follow the instructions and within 3-48 hours we will credit your Ripple wallet.

Service fees for the PayPower deposit are 0.20% applied to the total, plus HST.
Service fees for the interac e-transfer deposit are 2.50$ plus HST, plus any fees applied by your bank.

Withdraw CAD

Initiate a Withdrawal Notification on the web site. We will contact you with the instructions to a. deliver credit to your existing Visa PayPower prepaid card b. an exchange of the information to activate a new Visa PayPower prepaid card (only 20$ cards, available for 28$ with all fees and taxes accounted for, limited to supply on hand) c. an interac e-transfer to the email you provided us, minus the applicable fees for processing your order. If you agree to this quote, follow the instructions and within 3-48 hours we will credit your desired account.

Service fees for the Paypower prepaid credit are 4$ flat (Visa's service fee), plus 2.50$ charged by Xagate, plus HST. HST is calculated on the service fees, that is, your 50$ reload pack's service fees would cost 4$ + 2.50 = 6.50 * 0.13 HST = 0.845$, 6.50 + 0.85 = 7.35$ service fee for your 50$ withdrawal.

For the 20$ prepaid cards, the service fee, with all applicable taxes, is a flat rate of 8.50$.
24$ * 0.05 service fee = 1.20$, 24$ + 1.20 = 25.20$, 25.20 * 0.13 HST = 3.28$, 25.20$ + 3.28$ = 28.48$.

For the interac e-transfer, the service fee is 3.50$, plus HST. A hard limit applies of 100$ per account, per day.

Re: [ANN]Xagate [Offering: XAG, CAD, NXT Soon: BTC, all PM

PostPosted: Sun Nov 30, 2014 11:07 pm
by Sukrim
Well, seems like you moved on with your project and will actually run a gateway! :)

All the best, looking forward to the live version.

Re: [ANN]Xagate [Offering: XAG, CAD, NXT Soon: BTC, all PM

PostPosted: Mon Dec 01, 2014 3:39 pm
by twarden
Sukrim wrote:Well, seems like you moved on with your project and will actually run a gateway! :)

All the best, looking forward to the live version.

It was a long while of waiting and sitting on the phone, trying to get information out of FINTRAC and other regulatory bodies. Once I got my response from FINTRAC, which I posted in the original thread sometime in October, things got moving along rapidly.

I am glad that you have some interest in this Gateway once it is off the ground! :) The finishing touches before the testing includes finishing the code on the content for the ToS and IRBA pages of the web site. The fellows at my web hosting company are working with Thawte to install the EV SSL certificate as that becomes available from the CA.

I am also in the process of finalizing all of the test processes which I will instruct the beta testers to follow, as well as the business logic behind the deposits and withdrawals for XAG and NXT. I do not wish to trouble my testers with using their own money to test the CAD gateway functions and this has already been completed by myself. I have not issued the CAD on my personal account as a Ripple IOU for sale; I will only post 50% of the total transaction volume fees for CAD in the orderbook.

I am also proud to say that the IPO has raised 3,363.75 NXT (75$) within the first 24 hours of the IPO. Thank you to those individuals who found interest in this project and wished to support the development of this Gateway!

Finally, there are 5 beta testers of 25 slots available. Those interested in the lottery for a chance to win one of 9 shares of the Xagate Asset on the SAE may contact me via PM or email to register for the closed beta test later this December.

Edit: I found the link to the post I referenced.

Re: [ANN]Xagate [Offering: XAG, CAD, NXT Soon: BTC, all PM

PostPosted: Tue Dec 02, 2014 5:27 pm
by twarden
This post has been updated further (as well as the OP) with more methods of deposits and withdrawals for CAD once we have things rolling along well.


Edit: Updated web site with ToS and IRBA information. Still awaiting delivery of SSL certificate from the CA. All test plans and business logic is done. Released all of the financial statements related to the business in the OP and on the site.

Re: [ANN]Xagate [Offering: XAG, CAD, NXT Soon: BTC, all PM

PostPosted: Sun Dec 07, 2014 5:15 pm
by twarden
Change to Xagate Asset Terms of Service
Written on December 7, 2014, this change is effective January 7, 2015

In the case that less than 9 beta testers register before the required time, the spare shares of this asset will be offered at the fair market price of 672.75NXT each.

Here is the breakdown of the funding for the development of this projects:

The sale of shares for ~26,910 NXT for development of this project is expected from the sale of shares.

18% Web Hosting costs: 4843.8NXT
12% Utilities and Rent: 3229.2NXT
25% Research and Development: 6727.5NXT
10% NXT for loan repayment, market making, and investments: 2691NXT
22% to cover Transaction Fees (BTC/NXT) and S&H of orders: 5920.2NXT
10% held in reserve (within open buy orders, available NXT): 2691NXT
3% developer's funds for living expenses: 807.3NXT

A majority stake will be held of this asset (51%) for further revenue generation, once dividends begin to be paid in April. The Total Transaction Fees of Xagate are less the operating expenses of that month. The remainder is 40% of that amount for dividend disbursement to shareholders, whereas:

49% of shareholders receive 49% of 40% of the dividends.
Xagate receives the remaining 51% of the 40% of the dividends.

Xagate then uses this revenue in the following way to pay employees and further its development fund:

50% to further Research and Development
20% to pay Utilities and Rent
10% to pay Web hosting costs
5.5% to cover Transaction Fees (BTC/NXT) and S&H of orders
4.5% for developer's personal living expenses.

The remaining 60% of Xagate's revenue is used for market making on Ripple, to provide limited liquidity to the Xagate Asset on the SAE, and to pay further operating costs. 30% of this volume is kept as cash on hand within the respective format that asset is received in, unless necessary to convert wealth to fiat currency in order to pay taxes and other business expenses.