External and Operational Risk

Liquidity Risk

USX has 1:1 redemption with USDC, and a portion of backing assets are deployed in offchain strategies. Offchain positions (sUSX → USX) take 15 days to unwind.

Mitigation Measures:

• Principal preservation: Capital provided to the trading firm is governed by contractually structured loan agreements designed to preserve deployed principal.

• Dual redemption model: 15 day standard redemptions or instant secondary market swaps.

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.