Liberty Dollars are warehouse receipts for silver bullion stored with Liberty Dollar Financial via its precious metals storage partners. A warehouse receipt is a document showing title to goods stored with, and a receipt issued by, a person engaged in the business of storing goods for a fee. Generally, a warehouse receipt is considered a document of title. A warehouse receipt that is made to "Bearer" is a negotiable instrument and is often used for financing by providing it as security for credit. In United States v. Hastings, 296 U.S. 188, 197 (U.S. 1935), it was stated that a warehouse receipt is of special importance and is issued by a warehouseman for products stored for interstate or foreign commerce, or in any place under the exclusive jurisdiction of the U.S. (Warehouse Receipts Act, 1913:

Furthermore, The Columbia Law Review clarified the definition of a Warehouse Receipt as a simple document of title rather than any form of security, demonstrating the effects of the Warehouse Receipt Act in a definition that has been accepted as a maxim of law:

As a result, it can be ascertained that Liberty Dollar Financial Warehouse Receipts are lawful for use as an alternative currency, as "current money" and as a medium of barter exchange, but they are not under any regulations involving securities such as stocks, bonds or investments. Silver stored in our care is the basis for our Digital Payments System here. By purchasing .999 Fine Silver Bullion through us, your money is converted to the most stable form it can take, because the price of silver remains steady against all other commodities. Therefore, when you need to spend your money, any effects of inflation will be offset by the increase in the cash value of your silver. With our proprietary process, you can withdraw the cash value of your silver at any time, either to your PayPal account or to an associated bank account. Some banks can receive an instantaneous transfer so that you can access your funds within moments. In addition, you are also able to redeem your silver at any time and take it into your personal possession, or withdraw our Paper Warehouse Receipts for use locally, as well as buy and sell directly through our Liberty Dollar Marketplace with the actual silver value in your account.