Risk Factors for USDC

!March 2023: briefly de-pegged to $0.87 when $3.3B of reserves were held at failed Silicon Valley Bank
!Circle is a private company; regulatory action against Circle could impair USDC operations
!Lower yield opportunities than USDT due to institutional bias toward capital preservation
!US OFAC compliance means USDC can be blacklisted by Circle at the smart contract level
!Market share loss to USDT and newer entrants (USDe, USD0) in high-yield DeFi
!Fee revenue from reserves ($4B+ annual) creates regulatory scrutiny as a quasi-banking entity

Peg Stability

USDC 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 Circle Internet Financial
+Use hardware wallets for self-custody to eliminate exchange counterparty risk
+Set price alerts below $0.995 to react quickly if USDC begins to de-peg
+Only deploy into yield strategies you fully understand — complexity multiplies risk