> For the complete documentation index, see [llms.txt](https://docs.usx.capital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usx.capital/risks/external-and-operational-risk.md).

# External and Operational Risk

### Liquidity Risk

USX has 1:1 redemption with USDC, and backing assets are deployed in onchain DeFi strategies. Unstaking sUSX → USX is instant. Direct USX → USDC redemption (up to 14 days) is available for institutional partners only. Regular users can swap via liquidity pools.

**Mitigation Measures:**

* Dual exit model: institutional partners can redeem directly at 1:1 (up to 14 days, via `usx_operation [at] scroll [dot] io`); all users can swap instantly via liquidity pools (market price, fees apply).
* Strategy diversification to maintain adequate liquidity across multiple DeFi protocols.

<br>

### Stablecoin Depeg Risk

USX is backed exclusively by USDC. If USDC loses its dollar peg due to Circle's operational issues, regulatory actions, or banking stress, USX's own peg and redemption value are directly compromised.

**Mitigation Measures:**

* Real-time USDC price monitoring with alerts.
* Emergency liquidity reserves maintained in USDC for redemptions during black swan events.
* Halt minting USX tokens during significant USDC depeg events.

*For our full risk disclosure statement, please refer to* [*important legal disclosures and risk disclaimers*](https://scroll-zkp.gitbook.io/usx/resources/terms-of-service)*.*


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