Risks

While USD0x is designed to be a secure and stable financial instrument, users should be aware of potential risks, including:

Custody Risk – The underlying assets are held by reputable financial institutions; however, disruptions (e.g., financial distress of a custodian) could impact liquidity.
Regulatory Risk – Changes in laws or regulations governing digital assets, stablecoins, or treasury-backed instruments could affect USD0x’s functionality.
Counterparty Risk – Some underlying assets (e.g., $BUIDL) require redemption through fund managers, introducing dependency on their liquidity provisions.
Market Liquidity Risk – Extreme market conditions may impact the availability of liquid assets for redemptions.

Last updated 2 months ago

While USD0x is designed to be a secure and stable financial instrument, users should be aware of potential risks, including:

Custody Risk – The underlying assets are held by reputable financial institutions; however, disruptions (e.g., financial distress of a custodian) could impact liquidity.
Regulatory Risk – Changes in laws or regulations governing digital assets, stablecoins, or treasury-backed instruments could affect USD0x’s functionality.
Counterparty Risk – Some underlying assets (e.g., $BUIDL) require redemption through fund managers, introducing dependency on their liquidity provisions.
Market Liquidity Risk – Extreme market conditions may impact the availability of liquid assets for redemptions.

Last updated 2 months ago