Risk Disclosures & Disclaimers
Effective upon site launch. Updated as material changes occur.
Interacting with USDAO involves risk. We describe those risks clearly and completely below. Read this before using USDAO. These disclosures are required by law and by our commitment to full transparency.
Non-Yield Instrument
USDAO does not provide yield, returns, or investment income. It is designed as a USD-backed payment and settlement token supported by verified reserves. It is not an investment, bank deposit, or yield-bearing product.
Not FDIC Insured
USDAO tokens are not insured by the FDIC, SIPC, or any government-backed insurance program. If the USDAO Protocol fails, there is no government backstop.
Not a Bank Deposit
USDAO tokens are not bank deposits. They are digital tokens governed by smart contracts on the Ethereum blockchain. FDIC coverage on reserve accounts does not insure all reserves when total supply exceeds applicable limits.
Smart Contract Risk
The USDAO smart contracts have been independently audited. However, no audit can guarantee the absence of undiscovered vulnerabilities. Smart contract exploits may result in loss of funds despite best efforts at security.
Custodian Risk
USD reserves are held by a licensed US custodian bank. In the event of custodian insolvency, reserves may be subject to bankruptcy proceedings. The dual-custodian model mitigates but does not eliminate this risk.
Regulatory Risk
The regulatory environment for payment stablecoins is evolving. Future regulatory changes, including changes to reserve requirements or stablecoin issuance and transfer rules, could affect the protocol model. Future compliance cannot be guaranteed.
Not Investment Advice
Nothing on this website, in any USDAO documentation, or in any communication from the RUIT Foundation constitutes investment, financial, legal, or tax advice. Consult qualified professional advisors before making financial decisions.
RP Token Risk
RP Tokens issued by Realproton Inc. are digital securities. Their value is variable and can go to zero. Past use of USDAO in connection with RP Tokens does not guarantee similar future use. Acquiring or holding RP Tokens involves the risk of total loss of principal.
Secondary Market Risk
USDAO may trade on secondary markets at prices above or below $1.00. While the 1:1 redemption guarantee creates an arbitrage floor, secondary market prices are not guaranteed by the RUIT Foundation.
Transaction Irreversibility
Blockchain transactions are irreversible. Tokens sent to incorrect addresses cannot be recovered. Users are solely responsible for the security of their wallets and the accuracy of all transaction details.
Technology Infrastructure Risk
The Ethereum network, Chainlink oracle network, and Fireblocks infrastructure are third-party systems beyond RUIT Foundation's direct control. Failures of these systems could temporarily impair protocol operations.