Risk Factors for FDUSD

!Binance dependency — if Binance delist incentives are removed, FDUSD volume could collapse rapidly
!Justin Sun publicly claimed FDUSD was insolvent in April 2024, causing a brief de-peg (First Digital denied the claim)
!Hong Kong regulatory framework is different from US regulations — may not satisfy US institutional requirements
!Redemption is only available to institutional clients — retail holders depend on secondary markets
!Limited DeFi integrations outside BNB Chain and Binance ecosystem
!Geopolitical risk: Hong Kong regulatory environment is subject to influence from mainland China

Peg Stability

FDUSD maintains its $1.00 peg through its Fiat-Backed mechanism. Monitor real-time peg deviations using the BTC.PH Depeg Monitor.

+Diversify across multiple stablecoins — never hold all funds in a single issuer
+Monitor reserve attestations and audit reports published by First Digital Trust (Hong Kong)
+Use hardware wallets for self-custody to eliminate exchange counterparty risk
+Set price alerts below $0.995 to react quickly if FDUSD begins to de-peg
+Only deploy into yield strategies you fully understand — complexity multiplies risk