Risk Factors for USDG

!Revenue-sharing model has not been battle-tested at scale — partners may prefer terms to change
!Supply is small at launch; liquidity depth is thin, limiting large trade execution
!Paxos has previously shut down stablecoin products (PAX Gold's growth stalled; Binance USD forced to shut down)
!Partner-dependent growth model means if large partners (Robinhood, Kraken) delist, growth stalls
!The revenue-sharing model may attract regulatory scrutiny as a quasi-securities offering
!Limited DeFi protocol integrations at launch compared to USDC and USDT

Peg Stability

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