Risk Factors for USDY

!Non-US investors face restrictions; US retail investors cannot hold USDY under current securities law
!40–50 day lockup for new mints limits use as a liquid trading stablecoin
!Treasury yield (~5%) is fixed by macro rates — cannot compete with crypto-native yield in bull markets
!The SPV structure adds legal complexity and redemption friction compared to direct USD stablecoins
!Regulatory risk: SEC may re-classify USDY as a security with additional disclosure requirements
!Low secondary market liquidity compared to USDT/USDC — spreads can be wide for large trades

Peg Stability

USDY maintains its $1.00 peg through its RWA-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 Ondo Finance
+Use hardware wallets for self-custody to eliminate exchange counterparty risk
+Set price alerts below $0.995 to react quickly if USDY begins to de-peg
+Only deploy into yield strategies you fully understand — complexity multiplies risk