External and Operational Risk
Liquidity Risk
USX has 1:1 redemption with USDC, and backing assets are deployed in onchain DeFi strategies. Due to the temporary epoch-based yield distribution system, redemptions (sUSX → USX) take 14 days to complete.
Mitigation Measures:
Dual redemption model: 14-day standard redemptions or instant secondary market swaps through liquidity pools (fees apply).
Strategy diversification to maintain adequate liquidity across multiple DeFi protocols.
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.
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