Core protocol risks

Smart contract risks

USX relies on smart contracts for minting, redemption, collateral deployment, and yield distribution. Any vulnerability, bug, or exploit in the codebase could lead to loss of user funds or protocol failure.

Mitigation Measures:

• Multiple independent audits from reputable blockchain security firms

• Time-locked upgrades providing community review periods before implementation

• Formal verification for critical contract components

Oracle risk

USX relies on price feeds for yield calculations, asset valuations, and redemption pricing. Oracle failures, manipulation, or delayed updates could result in incorrect yield distributions, mispriced redemptions, or protocol exploitation.

Mitigation Measures:

• Multiple oracle sources to cross-verify critical price data to reduce a single point of failure

• Price deviation alerts that trigger when feeds show unusual variance from expected ranges

• Circuit breakers that pause operations when Oracle data appears compromised or stale

For our full risk disclosure statement, please refer to important legal disclosures and risk disclaimers.