> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usdh.money/llms.txt
> Use this file to discover all available pages before exploring further.

# Risks

> What can go wrong, what's done about it, and what risk is still left with you.

**Every way of holding a dollar carries risk.** This page lists the risks of holding USDh and sUSDh, from most to least significant. For each one it says what is done about it, and what risk is still left with you after that.

> [!WARNING]
>
> **The short version.** USDh carries the risk of its issuer, its partners and its code. sUSDh carries all of that **plus** the risk that a government it lends to does not pay on time or in full. Rewards are never guaranteed and can be zero.

## Risks for everyone

| # | Risk | What is done about it | What is still left with you |
| - | - | - | - |
| 1 | **The issuer.** USDh is a claim on its issuer. If the issuer failed, holders would be unsecured creditors | The reserves are run by a separate company, with no borrowing and no trading | The reserves are **not** held in trust for you. USDh is not insured |
| 2 | **No independent check yet.** You rely on published figures for the reserves | Holdings are published in the app. Supply is public on the blockchain. See [Verify on-chain](https://docs.usdh.money/check.md) | No independent firm has checked the reserves, and **the contracts have not been audited yet**. Both are planned |
| 3 | **A bug in the code.** A flaw in the contracts could cause a loss | The contracts are small and built on widely used code. Every change waits 48 hours in public | Any code can contain bugs |
| 4 | **The price.** USDh can trade below one dollar, especially in stressed markets | Businesses that redeem with the issuer at one dollar pull the price back | When you swap out, you get the market price of the moment |
| 5 | **Partners.** Reserves, banking and conversions rely on outside firms | The firms are named and established | If one failed or paid late, things could slow down or the reserves could shrink |
| 6 | **Freezes and pauses.** An address can be frozen, or everything paused, for sanctions or an emergency | They can only stop activity. Nobody can take your balance | While frozen or paused, your USDh can't move |
| 7 | **Laws.** Rules on stablecoins are changing fast | USDh isn't offered in the US or in sanctioned countries. Staking isn't offered in the UK, the EU, the EEA or Switzerland. See [who can use USDh](https://docs.usdh.money/legal.md#who-can-use-usdh) | New rules could change where or how you can use it |
| 8 | **Ethereum.** USDh runs on Ethereum | Nothing anyone here controls | Network fees can spike. A transaction sent to the wrong address can't be reversed |

## Extra risks if you stake

| # | Risk | What is done about it | What is still left with you |
| - | - | - | - |
| 9 | **A government restructures.** The dollars behind sUSDh are lent to governments. Countries rarely go bankrupt, but they do restructure, and lenders usually take a loss | Loans are only in US dollars, in short-term bonds held until they mature. USDh is never exposed to this | **If a government restructures, sUSDh takes the loss on that loan.** Your sUSDh could fall in value |
| 10 | **Rewards change or stop.** Rewards are not owed to anyone | The rate is capped in the contract, and every rate decision is public on the blockchain | The rate can be cut or paused at any time, and it can be zero. Past rewards say nothing about the future |
| 11 | **Bonds are harder to sell in a crisis** than Treasury bills | The bonds are short-term. The 30-day exit gives time to raise dollars | In a stressed market, leaving could take longer, or bonds could be sold at a loss |
| 12 | **You can't leave instantly** | The rules are shown in the app before you stake | You wait 30 days to claim. Your price is fixed when you ask, and asking again restarts the clock. See [Stake and unstake](https://docs.usdh.money/staking.md) |

## What we will never say

Nobody here promises any level of reward, describes USDh or sUSDh as a deposit or an investment product, or claims an audit or an independent check that has not happened. If you read otherwise anywhere, this page and the legal documents prevail.

The full legal wording is in the [Risk disclosures](https://docs.usdh.money/risk-disclosures.md) and [Staking risks](https://docs.usdh.money/staking-risk-disclosure.md).

*This page is for information only. It is not an offer, a promise or advice.*

*Last updated: Nov 10, 2026*


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