Risks
deUSD is an experimental synthetic stable asset, build atop a complex system that involves multiple technical, fundamental, and systemic risks. While the token and related contracts have been audited, there are still present risks that users should be aware of.
This section will outline these risks as well as the mitigations built into deUSD. These include, but are not limited to:
It is important to note that unlike USDC or UDST, deUSD is not “backed” by cash or cash equivalent. deUSD inherits the underlying asset risk of its deposited collaterals and architectural execution risk as noted below. Each deUSD is not backed or guaranteed by a U.S. dollar, and users of deUSD may not recoup some or all the values of the deposited collaterals. Each user of deUSD is encouraged to assess the risk and benefits of deUSD carefully.
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