Risk Factors for USDP

!Market cap below $200M — thin liquidity limits large institutional use
!Paxos received a Wells Notice from SEC in 2023 regarding BUSD (Binance USD) — USDP was unaffected but created regulatory uncertainty
!Loss of Binance partnership (BUSD shutdown) removed the largest USDP distribution channel analogue
!Paxos' focus has shifted to PYUSD and USDG, making USDP a lower priority product
!Limited DeFi integrations and low TVL across protocols
!Being regulated as a trust company means USDP is subject to NY regulatory discretion

Peg Stability

USDP 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 USDP begins to de-peg
+Only deploy into yield strategies you fully understand — complexity multiplies risk